SCMN 3710 Exam 2 Questions and All
Correct Answers 2026-2027 Updated.
The two primary costs (tradeoffs) analyzed in the EOQ model are - Answer Ordering/Setup
(transportation) and Inventory Carrying/Holding (insurance).
Which of the following is NOT an assumption of the "basic" EOQ model: - Answer variable and
unknown replenishment time.
A faster, more expensive transportation mode can "pay for itself" in the EOQ model by - Answer
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 - Answer 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 - Answer 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 - Answer
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 _________. - Answer decreases; increases
The key financial consideration in choosing between private and 3PL distribution options is -
Answer volume of product being moved.
The two largest cost centers in a DC are: - Answer labor and space.
Dependent demand relates to - Answer demand for another inventory item or product.
JIT is a ____ system. - Answer pull
Capital cost focuses on the cost of capital tied up in ________ and the resulting lost opportunity
from investing that capital elsewhere. - Answer inventory
, Transportation rates/prices are typically based on the cost/value of the service, weight,
distance, - Answer dimensions, and insurance.
The Maritime Administration (MARAD) is primarily responsible for - Answer promoting and
operating the U.S. Merchant Marine.
Federal regulatory initiatives initially focused on - Answer 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? -
Answer Electronic marketplace
Which approach represents a strategy in which the entire organization is focused on the
examination of process variability and continuous improvement? - Answer Total Quality
Management
In the Item Procurement Importance Matrix, what is described as high risk, high value? - Answer
Criticals
This mode of transportation is the one most often used in intermodal shipments. - Answer
Motor carrier
As a product's susceptibility to loss and damage increases, its transportation cost: - Answer
increases
Which of these is not a freight document? - Answer routing guide
Strategic sourcing as a process is far more broad and comprehensive than procurement. Overall,
the process starts with the formation of a - Answer steering committee.
In the Execute Sourcing Strategy step, the most important thing is to - Answer choose a
supplier or suppliers, depending on the objectives of the sourcing decision.
In the Item Procurement Importance Matrix, what describes high risk, low value? - Answer
Distinctives
Correct Answers 2026-2027 Updated.
The two primary costs (tradeoffs) analyzed in the EOQ model are - Answer Ordering/Setup
(transportation) and Inventory Carrying/Holding (insurance).
Which of the following is NOT an assumption of the "basic" EOQ model: - Answer variable and
unknown replenishment time.
A faster, more expensive transportation mode can "pay for itself" in the EOQ model by - Answer
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 - Answer 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 - Answer 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 - Answer
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 _________. - Answer decreases; increases
The key financial consideration in choosing between private and 3PL distribution options is -
Answer volume of product being moved.
The two largest cost centers in a DC are: - Answer labor and space.
Dependent demand relates to - Answer demand for another inventory item or product.
JIT is a ____ system. - Answer pull
Capital cost focuses on the cost of capital tied up in ________ and the resulting lost opportunity
from investing that capital elsewhere. - Answer inventory
, Transportation rates/prices are typically based on the cost/value of the service, weight,
distance, - Answer dimensions, and insurance.
The Maritime Administration (MARAD) is primarily responsible for - Answer promoting and
operating the U.S. Merchant Marine.
Federal regulatory initiatives initially focused on - Answer 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? -
Answer Electronic marketplace
Which approach represents a strategy in which the entire organization is focused on the
examination of process variability and continuous improvement? - Answer Total Quality
Management
In the Item Procurement Importance Matrix, what is described as high risk, high value? - Answer
Criticals
This mode of transportation is the one most often used in intermodal shipments. - Answer
Motor carrier
As a product's susceptibility to loss and damage increases, its transportation cost: - Answer
increases
Which of these is not a freight document? - Answer routing guide
Strategic sourcing as a process is far more broad and comprehensive than procurement. Overall,
the process starts with the formation of a - Answer steering committee.
In the Execute Sourcing Strategy step, the most important thing is to - Answer choose a
supplier or suppliers, depending on the objectives of the sourcing decision.
In the Item Procurement Importance Matrix, what describes high risk, low value? - Answer
Distinctives
