SCM 301: Iowa State Exam 2 Test
Questions Fully Solved 2026 Updated.
Resource planning is an activity within which foundation of supply chain management? -
Answer Operations Management
What are the main categories of resource planning? - Answer 1. Materials
2. Capacity
What gets more detailed when progressing from aggregate planning to MRP? - Answer
Product Classifications
What things are balanced in resource planning? - Answer 1. Production Rate
2. Workforce Level
3. Inventory on Hand
Are inputs to resource planning external or internal? - Answer Both. Market/Supplier inputs
are external. Capacity/Inventory inputs are internal.
What is held constant in a chase strategy? - Answer Finished Inventory Levels
What is held constant in a level strategy? - Answer 1. Production Levels
2. Number of workers
What is a time fence? - Answer Frozen period when no changes are allowed to schedules in
order to reduce system nervousness.
What is a bill of materials? - Answer Document that shows an inclusive listing of all
component parts & assemblies making up the final product.
What is an ERP (Enterprise Resource Planning) system? - Answer An information system
connecting all functional areas and operations of an organization and in some cases, suppliers
and customers via common software infrastructure and database
What are the advantages of using ERP? - Answer Provides means for supply chain members
to share information so that scarce resources can be fully utilized to meet demand, while
minimizing supply chain inventories
, Inventory management is an activity within which foundation of supply chain management? -
Answer Operations Management
Name the categories of inventory. - Answer 1. Finished Goods
2. Raw Materials
3. Work-in-process (WIP)
4. Maintenance, repair, and operating (MRO)
What are the main functions of inventory? - Answer 1. Buffer uncertainty in the marketplace,
satisfy customer demand
2. Decouple dependencies in the supply chain, facilitate production, meet dependent demand
What methods do you use to determine how much to order? - Answer 1. Simple bin systems
(EOQ)
2. Price Break Model
How do you determine how much inventory should be maintained? - Answer 1. Reorder
Point
2. Safety Stock
What methods do you use to determine when to order? - Answer 1. Periodic Review
2. Continuous Review
What is fixed in a periodic review? - Answer Fixed-Time Period
What is fixed in a continuous review? - Answer Fixed-Order Quantity
What methods do you use to determine how much effort to put into inventory? - Answer 1.
ABC inventory analysis
2. Inventory turnover analysis
Are high or low inventory turns better? - Answer High
What is cycle counting? - Answer A physical inventory taking technique in which inventory is
counted on a frequent basis rather than once or twice a year
Questions Fully Solved 2026 Updated.
Resource planning is an activity within which foundation of supply chain management? -
Answer Operations Management
What are the main categories of resource planning? - Answer 1. Materials
2. Capacity
What gets more detailed when progressing from aggregate planning to MRP? - Answer
Product Classifications
What things are balanced in resource planning? - Answer 1. Production Rate
2. Workforce Level
3. Inventory on Hand
Are inputs to resource planning external or internal? - Answer Both. Market/Supplier inputs
are external. Capacity/Inventory inputs are internal.
What is held constant in a chase strategy? - Answer Finished Inventory Levels
What is held constant in a level strategy? - Answer 1. Production Levels
2. Number of workers
What is a time fence? - Answer Frozen period when no changes are allowed to schedules in
order to reduce system nervousness.
What is a bill of materials? - Answer Document that shows an inclusive listing of all
component parts & assemblies making up the final product.
What is an ERP (Enterprise Resource Planning) system? - Answer An information system
connecting all functional areas and operations of an organization and in some cases, suppliers
and customers via common software infrastructure and database
What are the advantages of using ERP? - Answer Provides means for supply chain members
to share information so that scarce resources can be fully utilized to meet demand, while
minimizing supply chain inventories
, Inventory management is an activity within which foundation of supply chain management? -
Answer Operations Management
Name the categories of inventory. - Answer 1. Finished Goods
2. Raw Materials
3. Work-in-process (WIP)
4. Maintenance, repair, and operating (MRO)
What are the main functions of inventory? - Answer 1. Buffer uncertainty in the marketplace,
satisfy customer demand
2. Decouple dependencies in the supply chain, facilitate production, meet dependent demand
What methods do you use to determine how much to order? - Answer 1. Simple bin systems
(EOQ)
2. Price Break Model
How do you determine how much inventory should be maintained? - Answer 1. Reorder
Point
2. Safety Stock
What methods do you use to determine when to order? - Answer 1. Periodic Review
2. Continuous Review
What is fixed in a periodic review? - Answer Fixed-Time Period
What is fixed in a continuous review? - Answer Fixed-Order Quantity
What methods do you use to determine how much effort to put into inventory? - Answer 1.
ABC inventory analysis
2. Inventory turnover analysis
Are high or low inventory turns better? - Answer High
What is cycle counting? - Answer A physical inventory taking technique in which inventory is
counted on a frequent basis rather than once or twice a year
