ISDS 3115 FINAL EXAM QUESTIONS
WITH 100% CORRECT ANSWERS |
LATEST VERSION 2025/2026.
Kanban is associated with all EXCEPT which of the following?
a. reductions in inventory
b. small lot sizes
c. signals, such as cards, lights, or flags
d. increased material handling
e. moving inventory only as needed - ANS d. increased material handling
T/F A fast-food retailer that acquired a spice manufacturer would be practicing backward
integration. - ANS TRUE
In level scheduling, what is kept uniform from month to month?
a. demand levels
b. inventory levels
c. product mix
d. sub-contracting levels
e. production/workforce levels - ANS e. production/workforce levels
Which one of the following statements is TRUE about the kanban system?
a. the supplier workstation signals the customer workstation as soon as a batch is completed
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,b. it is useful to smooth operations when numerous quality problems occur
c. the quantities in the containers are usually large to reduce setup costs
d. it is associated with a push system
e. The customer workstation signals to the supplier workstation when production is needed -
ANS e. The customer workstation signals to the supplier workstation when production is
needed
JIT makes quality cheaper because:
A) the cost of low quality can be hidden as inventory cost.
B) JIT adds more buffers to the system.
C) JIT prevents long runs of defects.
D) B and C
E) A, B and C - ANS C) JIT prevents long runs of defects.
which of the following statements about ABC analysis is FALSE?
a. ABC analysis is based on the presumption that all items must be tightly controlled to produce
important cost savings
b. in ABC analysis, forecasting methods for "C" items may be less sophisticated than for "A"
items
c. Criteria other than annual dollar volume, such as high holding cost or delivery problems, can
determine item classification in ABC analysis
d. in ABC analysis "A" items should have tighter physical inventory control than "B" or "C" items
have
e. ABC analysis is based on the presumption that controlling the few most important items
produces the vast majority of inventory savings - ANS a. ABC analysis is based on the
presumption that all items must be tightly controlled to produce important cost savings
A disadvantage of the fixed-period inventory system is that:
a. orders usually are for larger quantities
b. additional inventory records are required
c. it involves higher ordering costs than the fixed quantity inventory system
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, d. since there is no count of inventory during the review period, a stockout is possible
e. the average inventory level is decreased - ANS d. since there is no count of inventory
during the review period, a stockout is possible
concerning relationships with suppliers, which of the following combinations is critical to the
success of JIT?
a. close relationships with skepticism
b. distant relationships with skepticism
c. distant relationships with trust
d. close relationships with trust
e. none of the above - ANS d. close relationships with trust
What is the practice of keeping a product generic as long as possible before customizing?
a. vendor-managed inventory
b. backward integration
c. forward integration
d. postponement
e. keiretsu - ANS d. postponement
t/f Outsourcing is a form of specialization that allows the outsourcing firm to focus on its key
success factors. - ANS true
t/f the supply chain management opportunity called postponement involves delaying deliveries
to avoid accumulation of inventory at the customer's site - ANS false
A fried chicken fast-food chain that acquired feed mills and poultry farms has performed which
of the following?
a. horizontal integration
b. job expansion
c. backward integration
3 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
WITH 100% CORRECT ANSWERS |
LATEST VERSION 2025/2026.
Kanban is associated with all EXCEPT which of the following?
a. reductions in inventory
b. small lot sizes
c. signals, such as cards, lights, or flags
d. increased material handling
e. moving inventory only as needed - ANS d. increased material handling
T/F A fast-food retailer that acquired a spice manufacturer would be practicing backward
integration. - ANS TRUE
In level scheduling, what is kept uniform from month to month?
a. demand levels
b. inventory levels
c. product mix
d. sub-contracting levels
e. production/workforce levels - ANS e. production/workforce levels
Which one of the following statements is TRUE about the kanban system?
a. the supplier workstation signals the customer workstation as soon as a batch is completed
1 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,b. it is useful to smooth operations when numerous quality problems occur
c. the quantities in the containers are usually large to reduce setup costs
d. it is associated with a push system
e. The customer workstation signals to the supplier workstation when production is needed -
ANS e. The customer workstation signals to the supplier workstation when production is
needed
JIT makes quality cheaper because:
A) the cost of low quality can be hidden as inventory cost.
B) JIT adds more buffers to the system.
C) JIT prevents long runs of defects.
D) B and C
E) A, B and C - ANS C) JIT prevents long runs of defects.
which of the following statements about ABC analysis is FALSE?
a. ABC analysis is based on the presumption that all items must be tightly controlled to produce
important cost savings
b. in ABC analysis, forecasting methods for "C" items may be less sophisticated than for "A"
items
c. Criteria other than annual dollar volume, such as high holding cost or delivery problems, can
determine item classification in ABC analysis
d. in ABC analysis "A" items should have tighter physical inventory control than "B" or "C" items
have
e. ABC analysis is based on the presumption that controlling the few most important items
produces the vast majority of inventory savings - ANS a. ABC analysis is based on the
presumption that all items must be tightly controlled to produce important cost savings
A disadvantage of the fixed-period inventory system is that:
a. orders usually are for larger quantities
b. additional inventory records are required
c. it involves higher ordering costs than the fixed quantity inventory system
2 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, d. since there is no count of inventory during the review period, a stockout is possible
e. the average inventory level is decreased - ANS d. since there is no count of inventory
during the review period, a stockout is possible
concerning relationships with suppliers, which of the following combinations is critical to the
success of JIT?
a. close relationships with skepticism
b. distant relationships with skepticism
c. distant relationships with trust
d. close relationships with trust
e. none of the above - ANS d. close relationships with trust
What is the practice of keeping a product generic as long as possible before customizing?
a. vendor-managed inventory
b. backward integration
c. forward integration
d. postponement
e. keiretsu - ANS d. postponement
t/f Outsourcing is a form of specialization that allows the outsourcing firm to focus on its key
success factors. - ANS true
t/f the supply chain management opportunity called postponement involves delaying deliveries
to avoid accumulation of inventory at the customer's site - ANS false
A fried chicken fast-food chain that acquired feed mills and poultry farms has performed which
of the following?
a. horizontal integration
b. job expansion
c. backward integration
3 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
