UARK SCMT 2103 EXAM 3 –
THOMAS QUESTIONS AND
ANSWERS 100% CORRECT
Lead time variability is a really a measure of lead time - ANSWER-Uncertainty
Which is a common bottleneck mentioned in the video that increases lead time? -
ANSWER-Receiving facilities at or near capacity
Lead time is best defined as: - ANSWER-The time between when an order is placed
and when it is received and available for use or sale
Which are components of lead time? - ANSWER-Order transmittal, Loading onto the
truck, and order picking
Which has the correct order of lead time processes? - ANSWER-Order creation,
picking, staging, transit
In a retail store, when does the lead time end? - ANSWER-When the inventory is
stocked on the shelf
Lead time is the time between when an order is placed and the inventory is -
ANSWER-Available for use
If a fulfillment center has no on-hand inventory but receives an order than cannot be
immediately filled, this order represents _____________ if the customer will wait. -
ANSWER-Backorder
If a customer uses a continuous review policy to manage inventory, when is it
possible to stockout? - ANSWER-Only during the lead tiem
When determining when or how much to order, which inventory variable should be
used? - ANSWER-Inventory position
How can a company's inventory position be determined? (formula) - ANSWER-On-
hand inventory + on-order inventory - backorders
If a company places a replenishment order on the same day each week, which policy
is being used? - ANSWER-Periodic review
A reorder point is a point in - ANSWER-A company's inventory position
Safety stock increases which aspect of a continuous review policy? - ANSWER-
Reorder point
Which inventory policy requires less safety stock? - ANSWER-Continuous review
, Which inventory policy will create the most uncertainty for a company's
transportation providers? - ANSWER-Continuous review
Inventory is good in the right - ANSWER-quantity
Inventory is a supply of goods that are held for purpose of - ANSWER-Future
utilization
Which type of inventory is the amount of inventory that is expected to sell during a
replenishment period? - ANSWER-Cycle stock
A bottleneck is the __________ part of a process - ANSWER-Slowest
Which form of inventory is the most expensive to hold? - ANSWER-Finished goods
Which type of inventory is in a transportation unit? - ANSWER-In-transit inventory
Which type of inventory is the amount of the expected amount of inventory on-hand
when the next replenishment arrives? - ANSWER-Safety stock
Which of the following are forms of inventory? - ANSWER-Raw materials, Work-in-
process, and finished goods
Which type of inventory allows a company to take advantage of transportation
utilization? - ANSWER-Cycle stock
Which type of inventory is used as a buffer against uncertainty in demand and lead
time? - ANSWER-Safety stock
Which is a clear sign of a bottleneck in a manufacturing process? - ANSWER-Work-
in process inventory is building behind
Which form of inventory is being transformed into a final product? - ANSWER-Work-
in process
What are the costs associated with inventory? (ISSC) - ANSWER-Item cost, ordering
or setup cost, shortage cost, and carrying cost
The cost associated with inventory shrink is classified as a ______ cost. - ANSWER-
Risk
Obsolescence is likely a bigger problem for which type of product? - ANSWER-Fresh
apples
Which aspect of inventory carrying cost is usually the largest? - ANSWER-Capital
As lead time variability increases, what should happen to safety stock? - ANSWER-It
should increase
THOMAS QUESTIONS AND
ANSWERS 100% CORRECT
Lead time variability is a really a measure of lead time - ANSWER-Uncertainty
Which is a common bottleneck mentioned in the video that increases lead time? -
ANSWER-Receiving facilities at or near capacity
Lead time is best defined as: - ANSWER-The time between when an order is placed
and when it is received and available for use or sale
Which are components of lead time? - ANSWER-Order transmittal, Loading onto the
truck, and order picking
Which has the correct order of lead time processes? - ANSWER-Order creation,
picking, staging, transit
In a retail store, when does the lead time end? - ANSWER-When the inventory is
stocked on the shelf
Lead time is the time between when an order is placed and the inventory is -
ANSWER-Available for use
If a fulfillment center has no on-hand inventory but receives an order than cannot be
immediately filled, this order represents _____________ if the customer will wait. -
ANSWER-Backorder
If a customer uses a continuous review policy to manage inventory, when is it
possible to stockout? - ANSWER-Only during the lead tiem
When determining when or how much to order, which inventory variable should be
used? - ANSWER-Inventory position
How can a company's inventory position be determined? (formula) - ANSWER-On-
hand inventory + on-order inventory - backorders
If a company places a replenishment order on the same day each week, which policy
is being used? - ANSWER-Periodic review
A reorder point is a point in - ANSWER-A company's inventory position
Safety stock increases which aspect of a continuous review policy? - ANSWER-
Reorder point
Which inventory policy requires less safety stock? - ANSWER-Continuous review
, Which inventory policy will create the most uncertainty for a company's
transportation providers? - ANSWER-Continuous review
Inventory is good in the right - ANSWER-quantity
Inventory is a supply of goods that are held for purpose of - ANSWER-Future
utilization
Which type of inventory is the amount of inventory that is expected to sell during a
replenishment period? - ANSWER-Cycle stock
A bottleneck is the __________ part of a process - ANSWER-Slowest
Which form of inventory is the most expensive to hold? - ANSWER-Finished goods
Which type of inventory is in a transportation unit? - ANSWER-In-transit inventory
Which type of inventory is the amount of the expected amount of inventory on-hand
when the next replenishment arrives? - ANSWER-Safety stock
Which of the following are forms of inventory? - ANSWER-Raw materials, Work-in-
process, and finished goods
Which type of inventory allows a company to take advantage of transportation
utilization? - ANSWER-Cycle stock
Which type of inventory is used as a buffer against uncertainty in demand and lead
time? - ANSWER-Safety stock
Which is a clear sign of a bottleneck in a manufacturing process? - ANSWER-Work-
in process inventory is building behind
Which form of inventory is being transformed into a final product? - ANSWER-Work-
in process
What are the costs associated with inventory? (ISSC) - ANSWER-Item cost, ordering
or setup cost, shortage cost, and carrying cost
The cost associated with inventory shrink is classified as a ______ cost. - ANSWER-
Risk
Obsolescence is likely a bigger problem for which type of product? - ANSWER-Fresh
apples
Which aspect of inventory carrying cost is usually the largest? - ANSWER-Capital
As lead time variability increases, what should happen to safety stock? - ANSWER-It
should increase
