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ISDS 3115 Exam 3 Questions with Detailed Verified
Answers
True/False: Outsourcing is a form of specialization that allows the outsourcing firm to focus on its
key success factors. Ans: ✓ ✓ ✓ True
True/False: The bullwhip effect refers to the increasing fluctuations in orders that often occur as
orders move through the supply chain. Ans: ✓ ✓ ✓ True
What is the practice of keeping a product generic as long as possible before customizing? Ans: ✓ ✓
✓ Postponement
A rice mill in south Louisiana purchases the trucking firm that transports packaged rice to
distributors. This is an example of of which of the following?
A. current transformation
B. Keirestsu
C. Horizontal integration
D. Backward Integration
E. Forward Integration Ans: ✓ ✓ ✓ E. Forward Integration
Local optimization is a supply-chain complication best described as: Ans: ✓ ✓ ✓ Optimizing one's
local area without full knowledge of supply chain needs.
Hewlett-Packard withholds customization of its laser printers as long as possible. This is an example
of what? Ans: ✓ ✓ ✓ Postponement
Which of the following would NOT generally be a motive for a firm to hold inventories?
A. to hedge against inflation
B. take advantage of quantity discounts
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C. to decouple various parts of the production process
D. to minimize holding cost Ans: ✓ ✓ ✓ D. to minimize holding cost
The two most basic inventory questions answered by the typical inventory are: Ans: ✓ ✓ ✓ Timing
of orders and order quantity
Which of the following statements about the basic EOQ model is true?
-If the annual demand were to double, the number of orders per year would increase
-If the carrying cost were to increase, the EOQ would fall
-If the annual demand were to double, the EOQ would increase
-if the ordering cost were to double the EOQ would rise
- All are true Ans: ✓ ✓ ✓ All statements are true
Which of the following statements regarding the production order quantity model is true? Ans: ✓
✓ ✓ It relaxes the assumption that all the order quantity is received at one time
The proper quantity of safety stock is typically determined by: Ans: ✓ ✓ ✓ setting the level of
safety stock so that a given stockout risk is not exceeded
which of the following should be higher in P system than Q system?
Order size
Lead time
Safety stock
Order spacing,
Demand Ans: ✓ ✓ ✓ Safety stock
Aggregate planning would entail which production aspects at BMW for a 12 month period? Ans: ✓
✓ ✓ Total number of cars to produce
Dependence on an external source of supply is found in which aggregate planning strategy? Ans: ✓
✓ ✓ Subcontracting
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ISDS 3115 Exam 3 Questions with Detailed Verified
Answers
True/False: Outsourcing is a form of specialization that allows the outsourcing firm to focus on its
key success factors. Ans: ✓ ✓ ✓ True
True/False: The bullwhip effect refers to the increasing fluctuations in orders that often occur as
orders move through the supply chain. Ans: ✓ ✓ ✓ True
What is the practice of keeping a product generic as long as possible before customizing? Ans: ✓ ✓
✓ Postponement
A rice mill in south Louisiana purchases the trucking firm that transports packaged rice to
distributors. This is an example of of which of the following?
A. current transformation
B. Keirestsu
C. Horizontal integration
D. Backward Integration
E. Forward Integration Ans: ✓ ✓ ✓ E. Forward Integration
Local optimization is a supply-chain complication best described as: Ans: ✓ ✓ ✓ Optimizing one's
local area without full knowledge of supply chain needs.
Hewlett-Packard withholds customization of its laser printers as long as possible. This is an example
of what? Ans: ✓ ✓ ✓ Postponement
Which of the following would NOT generally be a motive for a firm to hold inventories?
A. to hedge against inflation
B. take advantage of quantity discounts
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C. to decouple various parts of the production process
D. to minimize holding cost Ans: ✓ ✓ ✓ D. to minimize holding cost
The two most basic inventory questions answered by the typical inventory are: Ans: ✓ ✓ ✓ Timing
of orders and order quantity
Which of the following statements about the basic EOQ model is true?
-If the annual demand were to double, the number of orders per year would increase
-If the carrying cost were to increase, the EOQ would fall
-If the annual demand were to double, the EOQ would increase
-if the ordering cost were to double the EOQ would rise
- All are true Ans: ✓ ✓ ✓ All statements are true
Which of the following statements regarding the production order quantity model is true? Ans: ✓
✓ ✓ It relaxes the assumption that all the order quantity is received at one time
The proper quantity of safety stock is typically determined by: Ans: ✓ ✓ ✓ setting the level of
safety stock so that a given stockout risk is not exceeded
which of the following should be higher in P system than Q system?
Order size
Lead time
Safety stock
Order spacing,
Demand Ans: ✓ ✓ ✓ Safety stock
Aggregate planning would entail which production aspects at BMW for a 12 month period? Ans: ✓
✓ ✓ Total number of cars to produce
Dependence on an external source of supply is found in which aggregate planning strategy? Ans: ✓
✓ ✓ Subcontracting
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