UARK SCMT 2103 FINAL EXAM ANSWERS AND
QUESTIONS SET A+
✔✔0.50 - ✔✔Imagine you are a small format grocer and that on average you sell 30
squash per day. Some days you sell more and some days you sell less, but on average
you sell 30. In fact, you have been doing this for a while and have calculated the
probability of selling different quantities of squash, reproduced in the table of discrete
probabilities below.
Quantity Sold Probability
20 0.10
25 0.20
30 0.40
35 0.20
40 0.10
You have decided to stock fewer squash and instead stock more tomatoes. You
decided to stock 35 squash each day. About how many sales of squash do you expect
to lose each day as a result of this decision to stock more tomatoes?
✔✔percentage of items in stock - ✔✔Perpetual inventory is one of the major ways that
percentage of time in stock and ________________are measured.
✔✔75 units - ✔✔The amount received by a firm is 100 units and it sold 25 units.
Assuming initial inventory is zero, what is the perpetual inventory?
✔✔The percentage item fill rate (IFR) - ✔✔_____________________tells you how
much demand you are losing using the percentage of demand fulfilled from on hand
inventory.
✔✔75 units - ✔✔The amount received by a firm is 200 units and it sold 125 units.
Assuming initial inventory is zero, what is the perpetual inventory?
, ✔✔Initial inventory + Amount received - amount sold - ✔✔Perpetual inventory is:
✔✔40% - ✔✔Assume an item has a demand of 1 per day and a demand of 6 every 5th
day. However, the item is out of stock every 5th day. What would be the item fill rate
(IFR).
✔✔$1.20 - ✔✔Imagine a customer is looking for a giant specialty candy bar in a store
but it is not on the shelf. Suppose that the retail margin on the candy bar is $3 and that
40% of the customers forgo having the candy bar but the other 60% switch to another
brand. Suppose that the margin the retailer makes on this brand is also $3 per unit.
Then the cost of a stockout per unit of lost sale to the retailer is ____.
✔✔expected value - ✔✔One approach to estimating the cost of a stockout per unit of
lost sale is to calculate an estimate of the ____________.
✔✔the standard deviation - ✔✔You only need two parameters to define a normal
distribution; the mean and_____________
✔✔83% - ✔✔Hannah's Bakery bakes bread for 100 local supermarkets and sells them
through the supermarkets on a consignment basis, which means she only gets paid for
the bread that sell. She destroys bread that don't sell. People in this city love her bread.
The total delivered cost of bread is $ 0.50 per unit and she sells it to retailers for $3.00.
Given this information, calculate the optimal service level.
✔✔89% - ✔✔Maria's Bakery bakes muffins for 170 local supermarkets and sells them
through the supermarkets on a consignment basis, which means she only gets paid for
the muffins that sell. She destroys muffins that don't sell. People in this city love her
muffins. The total delivered cost of muffins is $ 0.85 per unit and she sells it to retailers
for $8.00. Given this information, calculate the optimal service level.
✔✔demand fulfilled; on hand inventory - ✔✔Fill rate is the % of __________ from
________.
✔✔ROA - ✔✔The direct effect of an increase in the number of distribution centers is to
increase assets which reduces __________.
✔✔Periods of supply - ✔✔Which of the following metrics tells you how many periods it
will take to sell through your inventory on hand?
✔✔add up the sales for the category and divide by the total inventory level for the
category. - ✔✔If you wanted to assess inventory turns of a category with multiple SKUs,
the best way to do that would be to ________________:
QUESTIONS SET A+
✔✔0.50 - ✔✔Imagine you are a small format grocer and that on average you sell 30
squash per day. Some days you sell more and some days you sell less, but on average
you sell 30. In fact, you have been doing this for a while and have calculated the
probability of selling different quantities of squash, reproduced in the table of discrete
probabilities below.
Quantity Sold Probability
20 0.10
25 0.20
30 0.40
35 0.20
40 0.10
You have decided to stock fewer squash and instead stock more tomatoes. You
decided to stock 35 squash each day. About how many sales of squash do you expect
to lose each day as a result of this decision to stock more tomatoes?
✔✔percentage of items in stock - ✔✔Perpetual inventory is one of the major ways that
percentage of time in stock and ________________are measured.
✔✔75 units - ✔✔The amount received by a firm is 100 units and it sold 25 units.
Assuming initial inventory is zero, what is the perpetual inventory?
✔✔The percentage item fill rate (IFR) - ✔✔_____________________tells you how
much demand you are losing using the percentage of demand fulfilled from on hand
inventory.
✔✔75 units - ✔✔The amount received by a firm is 200 units and it sold 125 units.
Assuming initial inventory is zero, what is the perpetual inventory?
, ✔✔Initial inventory + Amount received - amount sold - ✔✔Perpetual inventory is:
✔✔40% - ✔✔Assume an item has a demand of 1 per day and a demand of 6 every 5th
day. However, the item is out of stock every 5th day. What would be the item fill rate
(IFR).
✔✔$1.20 - ✔✔Imagine a customer is looking for a giant specialty candy bar in a store
but it is not on the shelf. Suppose that the retail margin on the candy bar is $3 and that
40% of the customers forgo having the candy bar but the other 60% switch to another
brand. Suppose that the margin the retailer makes on this brand is also $3 per unit.
Then the cost of a stockout per unit of lost sale to the retailer is ____.
✔✔expected value - ✔✔One approach to estimating the cost of a stockout per unit of
lost sale is to calculate an estimate of the ____________.
✔✔the standard deviation - ✔✔You only need two parameters to define a normal
distribution; the mean and_____________
✔✔83% - ✔✔Hannah's Bakery bakes bread for 100 local supermarkets and sells them
through the supermarkets on a consignment basis, which means she only gets paid for
the bread that sell. She destroys bread that don't sell. People in this city love her bread.
The total delivered cost of bread is $ 0.50 per unit and she sells it to retailers for $3.00.
Given this information, calculate the optimal service level.
✔✔89% - ✔✔Maria's Bakery bakes muffins for 170 local supermarkets and sells them
through the supermarkets on a consignment basis, which means she only gets paid for
the muffins that sell. She destroys muffins that don't sell. People in this city love her
muffins. The total delivered cost of muffins is $ 0.85 per unit and she sells it to retailers
for $8.00. Given this information, calculate the optimal service level.
✔✔demand fulfilled; on hand inventory - ✔✔Fill rate is the % of __________ from
________.
✔✔ROA - ✔✔The direct effect of an increase in the number of distribution centers is to
increase assets which reduces __________.
✔✔Periods of supply - ✔✔Which of the following metrics tells you how many periods it
will take to sell through your inventory on hand?
✔✔add up the sales for the category and divide by the total inventory level for the
category. - ✔✔If you wanted to assess inventory turns of a category with multiple SKUs,
the best way to do that would be to ________________:
