IDIS 343 Exam 1 Questions and Answers with Verified Solutions |
Latest 2026 Update
Q: Inventory Management Philosophies (Supply-Driven)
Answer:
- Supply quantities and timing are
unknown
All supply must be accepted and processed
Inventories are controlled through demand
Q: Inventory Management Philosophies (Aggregate Control)
Answer:
Classification of items:
Groups items according to their sales level based on the 80-20 principle (80% of
sales come
from 20% of inventory SKU's (Stock Keeping Unit))
Allows different control policies for 3 or more broad product groups
, IDIS 343 Exam 1 Questions and Answers with Verified Solutions |
Latest 2026 Update
Q: ABC Analysis (Inventory Stratification)
Answer:
Ranking System
Developed in 1951 by H. Ford Dicky of General Electric.
Suggested that GE classify items according to relative sales volume, cash flows, lead
time, or
stock-out cost.
Most important inventory put in Group A. (Generate top 60%)
Lesser impact goods put in Groups B and C respectively. (Generate next 30%, and
then the
rest)
A items = 5 points
B items = 3 points
C items = 1 point
Q: Supply Chain Structure (Material Flow)
Answer:
Goes from manufacturer to end user
, IDIS 343 Exam 1 Questions and Answers with Verified Solutions |
Latest 2026 Update
Q: Supply Chain Structure (Information flow)
Answer:
Goes both ways from manufacturer and end user
Q: Supply Chain Structure (Cash flow)
Answer:
End user to manufacturer
Q: 3 Components of Logistics Cost
Answer:
- Transportation Costs (63%)
Inventory carrying costs (33%)
Administration Costs (4%)
Q: Product Availability
Answer:
(Demand Satisfied/Total Demand) * 100
, IDIS 343 Exam 1 Questions and Answers with Verified Solutions |
Latest 2026 Update
Q: Weight to Bulk Ratio
Answer:
Increased ratio means lower shipping costs
Q: Value-weight Ratio
Answer:
When shipping high value products, you can use premium
transportation. Low cost items such as coal don't require this
Q: Substitutability
Answer:
Want to offer high level customer service or else customers will just switch
to similar competitor
Q: Risk
Answer:
It could break, expire (food items), hazardous material, perishable, theft
Latest 2026 Update
Q: Inventory Management Philosophies (Supply-Driven)
Answer:
- Supply quantities and timing are
unknown
All supply must be accepted and processed
Inventories are controlled through demand
Q: Inventory Management Philosophies (Aggregate Control)
Answer:
Classification of items:
Groups items according to their sales level based on the 80-20 principle (80% of
sales come
from 20% of inventory SKU's (Stock Keeping Unit))
Allows different control policies for 3 or more broad product groups
, IDIS 343 Exam 1 Questions and Answers with Verified Solutions |
Latest 2026 Update
Q: ABC Analysis (Inventory Stratification)
Answer:
Ranking System
Developed in 1951 by H. Ford Dicky of General Electric.
Suggested that GE classify items according to relative sales volume, cash flows, lead
time, or
stock-out cost.
Most important inventory put in Group A. (Generate top 60%)
Lesser impact goods put in Groups B and C respectively. (Generate next 30%, and
then the
rest)
A items = 5 points
B items = 3 points
C items = 1 point
Q: Supply Chain Structure (Material Flow)
Answer:
Goes from manufacturer to end user
, IDIS 343 Exam 1 Questions and Answers with Verified Solutions |
Latest 2026 Update
Q: Supply Chain Structure (Information flow)
Answer:
Goes both ways from manufacturer and end user
Q: Supply Chain Structure (Cash flow)
Answer:
End user to manufacturer
Q: 3 Components of Logistics Cost
Answer:
- Transportation Costs (63%)
Inventory carrying costs (33%)
Administration Costs (4%)
Q: Product Availability
Answer:
(Demand Satisfied/Total Demand) * 100
, IDIS 343 Exam 1 Questions and Answers with Verified Solutions |
Latest 2026 Update
Q: Weight to Bulk Ratio
Answer:
Increased ratio means lower shipping costs
Q: Value-weight Ratio
Answer:
When shipping high value products, you can use premium
transportation. Low cost items such as coal don't require this
Q: Substitutability
Answer:
Want to offer high level customer service or else customers will just switch
to similar competitor
Q: Risk
Answer:
It could break, expire (food items), hazardous material, perishable, theft
