Lscm 3960 Certification Evaluation Full Questions With Complete Solution

LSCM 3960 CERTIFICATION EVALUATION
FULL QUESTIONS WITH COMPLETE
SOLUTION

●● Inventory management is not as important as it once was due to other
factors that have come into play.
Answer: FALSE


●● Storage space costs are not variable.
Answer: FALSE


●● Batching economies or cycle stocks usually arise from three sources.
Which of these is not a source?
Answer: Demand


●● "Batching economies" and "cycle stocks" are the same.
Answer: True


●● In the event of a "stockout" one of the things that could happen is:
Answer: extra shipping cost may be incurred.


●● The fixed order interval EOQ model is best used for SKUs with:

, Answer: stable demand.


●● Inventory plays a dual role in organizations. Inventory impacts the
cost of goods sold as well as supporting the balance sheet, a new concept
only recently receiving attention.
Answer: False


●● Inventory as an asset on the balance sheet and a _____ on the income
statement.
Answer: variable expense


●● Ordering cost refers to the expense of placing an order for additional
inventory and does not include the cost or expense of the product itself.
Answer: True


●● A driving force behind the attention to OTC cycle variability is
safety stock. The absolute length of the order cycle will influence
demand inventory.
Answer: True


●● The term replenishment cycle refers to
Answer: the acquisition of additional inventory.


●● Customer service is anything that touches the customer.