SCMN 3710 Exam 2 Study Guide, Practice Questions and Review 2026
The two primary costs (tradeoffs) analyzed in the EOQ model are - ANS ✔✔Ordering/Setup
(transportation) and Inventory Carrying/Holding (insurance).
Which of the following is NOT an assumption of the "basic" EOQ model: - ANS ✔✔variable and
unknown replenishment time.
A faster, more expensive transportation mode can "pay for itself" in the EOQ model by - ANS
✔✔reducing in-transit inventories, resulting in smaller optimum Q size.
The context of a "Low Pick, High Store" environment where "Storage" dominates would suggest
equipment selection and warehouse design that favored - ANS ✔✔random locations, high
density storage and manual handling.
The "Work" principle of material handling (Material Handling Institute, "Ten Principles of
Material Handling," 2011) states that managers should attempt to - ANS ✔✔minimize the
amount of handling without sacrificing productivity or service.
The "Space Utilization" principle of material handling (Material Handling Institute, "Ten
Principles of Material Handling," 2011) states that managers should attempt to - ANS
✔✔effectively and efficiently utilize all available space.
As the number of picks per order picker decreases on a given tour, his/her total time out
________ and the time per pick _________. - ANS ✔✔decreases; increases
The key financial consideration in choosing between private and 3PL distribution options is -
ANS ✔✔volume of product being moved.
, The two largest cost centers in a DC are: - ANS ✔✔labor and space.
Dependent demand relates to - ANS ✔✔demand for another inventory item or product.
JIT is a ____ system. - ANS ✔✔pull
Capital cost focuses on the cost of capital tied up in ________ and the resulting lost opportunity
from investing that capital elsewhere. - ANS ✔✔inventory
Transportation rates/prices are typically based on the cost/value of the service, weight,
distance, - ANS ✔✔dimensions, and insurance.
The Maritime Administration (MARAD) is primarily responsible for - ANS ✔✔promoting and
operating the U.S. Merchant Marine.
Federal regulatory initiatives initially focused on - ANS ✔✔economic issues, to ensure
competition and fair pricing for shippers.
Which e-commerce business model used in procurement and sourcing has a seller-operated
service that consists of a number of electronic catalogs from suppliers within a market? - ANS
✔✔Electronic marketplace
Which approach represents a strategy in which the entire organization is focused on the
examination of process variability and continuous improvement? - ANS ✔✔Total Quality
Management
In the Item Procurement Importance Matrix, what is described as high risk, high value? - ANS
✔✔Criticals
The two primary costs (tradeoffs) analyzed in the EOQ model are - ANS ✔✔Ordering/Setup
(transportation) and Inventory Carrying/Holding (insurance).
Which of the following is NOT an assumption of the "basic" EOQ model: - ANS ✔✔variable and
unknown replenishment time.
A faster, more expensive transportation mode can "pay for itself" in the EOQ model by - ANS
✔✔reducing in-transit inventories, resulting in smaller optimum Q size.
The context of a "Low Pick, High Store" environment where "Storage" dominates would suggest
equipment selection and warehouse design that favored - ANS ✔✔random locations, high
density storage and manual handling.
The "Work" principle of material handling (Material Handling Institute, "Ten Principles of
Material Handling," 2011) states that managers should attempt to - ANS ✔✔minimize the
amount of handling without sacrificing productivity or service.
The "Space Utilization" principle of material handling (Material Handling Institute, "Ten
Principles of Material Handling," 2011) states that managers should attempt to - ANS
✔✔effectively and efficiently utilize all available space.
As the number of picks per order picker decreases on a given tour, his/her total time out
________ and the time per pick _________. - ANS ✔✔decreases; increases
The key financial consideration in choosing between private and 3PL distribution options is -
ANS ✔✔volume of product being moved.
, The two largest cost centers in a DC are: - ANS ✔✔labor and space.
Dependent demand relates to - ANS ✔✔demand for another inventory item or product.
JIT is a ____ system. - ANS ✔✔pull
Capital cost focuses on the cost of capital tied up in ________ and the resulting lost opportunity
from investing that capital elsewhere. - ANS ✔✔inventory
Transportation rates/prices are typically based on the cost/value of the service, weight,
distance, - ANS ✔✔dimensions, and insurance.
The Maritime Administration (MARAD) is primarily responsible for - ANS ✔✔promoting and
operating the U.S. Merchant Marine.
Federal regulatory initiatives initially focused on - ANS ✔✔economic issues, to ensure
competition and fair pricing for shippers.
Which e-commerce business model used in procurement and sourcing has a seller-operated
service that consists of a number of electronic catalogs from suppliers within a market? - ANS
✔✔Electronic marketplace
Which approach represents a strategy in which the entire organization is focused on the
examination of process variability and continuous improvement? - ANS ✔✔Total Quality
Management
In the Item Procurement Importance Matrix, what is described as high risk, high value? - ANS
✔✔Criticals
