OMGT Exam 3 | UPDATED Questions with 100% Verified Answers
Question:
A local barbecue joint makes one massive batch of potato
salad each day. If they run out of this savory side before the
end of the day, their last few customers are less than satisfied,
but if they make too much, they sell it to the local hog farmer
for feed. Every serving costs an equivalent of $0.23 to make,
but can be sold for $1.50 to customers and for $0.08 to the
hog farmer. The average daily demand is for 200 servings
with a standard deviation of 20 servings. How many servings
should be made each day?
a. 220
b. 225
c. 230
d. 235
Answer:
B
Question:
Supply chain inventory:
a. increases in cost as materials move downstream.
b. decreases in value as materials progress downstream.
c. increases in flexibility as materials progress upstream.
d. is governed by the bullwhip effect, which says a small
change downstream can cause a large change upstream.
Answer:
A
Question:
The inventory that companies hold to protect themselves
against uncertainties in either demand or replenishment time
is called:
a. safety stock.
,b. anticipation inventory.
c. hedge inventory.
d. smoothing inventory.
Answer:
A
Question:
Individual links in the supply chain can stabilize their
production at the most efficient level by using:
a. safety stock.
b. anticipation inventory.
c. linkage inventory
d. smoothing inventory.
Answer:
D
Question:
The mismatch between timing of customer demand and
supply chain lead times is what drives the need for:
a. safety stock.
b. anticipation inventory.
c. cycle stock.
d. hedge inventory.
Answer:
B
Question:
The factory produces product and ships it to the distributor.
The distributor sends it to the wholesaler when they receive
an order. The wholesaler ships the product to the retailer as
the retailer requests replenishment. The customer visits the
retailer's bricks and mortar store to purchase the product when
they run out. Which of these supply chain members is most
,likely subjected to the greatest variability in customer
demand?
a. retailer
b. wholesaler
c. distributor
d. factory
Answer:
D
Question:
Tata Motors assembles cars from their own parts and
subassemblies and also controls the mining and fabrication of
the materials used to create those parts. When Anand ordered
their luxury sedan with the platinum dashboard he knew he
wouldn't be taking delivery of his dream car the next week.
Rather, he would be waiting a while thanks to:
a. a mismatch between supply chain lead time and customer
demand.
b. a mismatch between overall demand levels and productive
capacity.
c. a mismatch between demand and the most efficient
production volume.
d. a mismatch between demand and the most efficient
shipment volume.
Answer:
A
Question:
Which of the following relationships shows dependent
demand inventory?
a. A business purchases a new car when the old one wears
out.
b. A tire maker buys cleaning supplies.
, c. An automaker purchases four tires for each car they
produce.
d. A winemaker buys grapes from farmers in the Columbia
Valley.
Answer:
C
Question:
The beef jerky driver shows up every Monday to take orders
from his convenience store customers. One fine Monday
morning he stops in the Quik-E Mart and notes that there are
only three sticks on the shelves. Consulting his route sheet, he
discovers that the restock level is 40. The order quantity is
therefore:
a. 3 sticks.
b. 37 sticks.
c. 40 sticks.
d. Cannot be determined with the information given.
Answer:
B
Question:
A hospital's biomedical repair shop uses a 4-week periodic
system to maintain the inventory on the blood pressure cuff
repair parts. They use an average 40 adult arm cuffs with a
standard deviation of 6 cuffs every four weeks. Cuffs aren't
the most critical item they carry, but the manager would like
to avoid the embarrassment of a stockout at least 95% of the
time. What should their restocking level be?
a. 40 cuffs
b. 46 cuffs
c. 50 cuffs
d. 52 cuffs
Question:
A local barbecue joint makes one massive batch of potato
salad each day. If they run out of this savory side before the
end of the day, their last few customers are less than satisfied,
but if they make too much, they sell it to the local hog farmer
for feed. Every serving costs an equivalent of $0.23 to make,
but can be sold for $1.50 to customers and for $0.08 to the
hog farmer. The average daily demand is for 200 servings
with a standard deviation of 20 servings. How many servings
should be made each day?
a. 220
b. 225
c. 230
d. 235
Answer:
B
Question:
Supply chain inventory:
a. increases in cost as materials move downstream.
b. decreases in value as materials progress downstream.
c. increases in flexibility as materials progress upstream.
d. is governed by the bullwhip effect, which says a small
change downstream can cause a large change upstream.
Answer:
A
Question:
The inventory that companies hold to protect themselves
against uncertainties in either demand or replenishment time
is called:
a. safety stock.
,b. anticipation inventory.
c. hedge inventory.
d. smoothing inventory.
Answer:
A
Question:
Individual links in the supply chain can stabilize their
production at the most efficient level by using:
a. safety stock.
b. anticipation inventory.
c. linkage inventory
d. smoothing inventory.
Answer:
D
Question:
The mismatch between timing of customer demand and
supply chain lead times is what drives the need for:
a. safety stock.
b. anticipation inventory.
c. cycle stock.
d. hedge inventory.
Answer:
B
Question:
The factory produces product and ships it to the distributor.
The distributor sends it to the wholesaler when they receive
an order. The wholesaler ships the product to the retailer as
the retailer requests replenishment. The customer visits the
retailer's bricks and mortar store to purchase the product when
they run out. Which of these supply chain members is most
,likely subjected to the greatest variability in customer
demand?
a. retailer
b. wholesaler
c. distributor
d. factory
Answer:
D
Question:
Tata Motors assembles cars from their own parts and
subassemblies and also controls the mining and fabrication of
the materials used to create those parts. When Anand ordered
their luxury sedan with the platinum dashboard he knew he
wouldn't be taking delivery of his dream car the next week.
Rather, he would be waiting a while thanks to:
a. a mismatch between supply chain lead time and customer
demand.
b. a mismatch between overall demand levels and productive
capacity.
c. a mismatch between demand and the most efficient
production volume.
d. a mismatch between demand and the most efficient
shipment volume.
Answer:
A
Question:
Which of the following relationships shows dependent
demand inventory?
a. A business purchases a new car when the old one wears
out.
b. A tire maker buys cleaning supplies.
, c. An automaker purchases four tires for each car they
produce.
d. A winemaker buys grapes from farmers in the Columbia
Valley.
Answer:
C
Question:
The beef jerky driver shows up every Monday to take orders
from his convenience store customers. One fine Monday
morning he stops in the Quik-E Mart and notes that there are
only three sticks on the shelves. Consulting his route sheet, he
discovers that the restock level is 40. The order quantity is
therefore:
a. 3 sticks.
b. 37 sticks.
c. 40 sticks.
d. Cannot be determined with the information given.
Answer:
B
Question:
A hospital's biomedical repair shop uses a 4-week periodic
system to maintain the inventory on the blood pressure cuff
repair parts. They use an average 40 adult arm cuffs with a
standard deviation of 6 cuffs every four weeks. Cuffs aren't
the most critical item they carry, but the manager would like
to avoid the embarrassment of a stockout at least 95% of the
time. What should their restocking level be?
a. 40 cuffs
b. 46 cuffs
c. 50 cuffs
d. 52 cuffs
