BUS 370 CH 11-14 Test Questions
Fully Solved.
Any idle resource held for future use- those stocks or items used to support production (raw
materials), supporting activities (drill bits) and customer service (finished goods, spare parts) -
Answer inventory
demand from outside the organization, unpredictable, and usually forecasted - Answer
independent demand
demand tied to production of another item (ex: table legs) - Answer dependent
A company which produced electricity, like Progress Energy, is considering buying extra coal to
hold in inventory. They want to buffer against a potential strike at a major coal producer which
would likely result in a significant price increase.
This type of inventory is: - Answer hedging
Scholastic, the book publisher, has their suppliers, book printers, manufacture millions of Harry
Potter books ahead of time so customers can have instant availability on the launch date. This
type of inventory is: - Answer anticipation
A company which sources raw materials and components from overseas will hold extra
inventory of these items due to a mismatch between timing of customer demand and supply
chain lead times - Answer transportation
A computer manufacture receives 20,000 computer mice in bulk from an upstream supplier,
gradually uses them up over time, then receives another bulk shipment of 20,000 computer
mice - Answer cycle stock
The owner of a vending machine company has weekly stops to check the soda machine at NC
State. She checks inventory levels and fills the machine back up to its full restocking level. She is
using which of the following types of independent demand inventory styles? - Answer Periodic
Review System
Mr. Drucker uses a periodic review system to manage the inventory in his dry goods store. He
likes to maintain 15 sacks of sugar on his shelves based on the annual demand figure of 225
Fully Solved.
Any idle resource held for future use- those stocks or items used to support production (raw
materials), supporting activities (drill bits) and customer service (finished goods, spare parts) -
Answer inventory
demand from outside the organization, unpredictable, and usually forecasted - Answer
independent demand
demand tied to production of another item (ex: table legs) - Answer dependent
A company which produced electricity, like Progress Energy, is considering buying extra coal to
hold in inventory. They want to buffer against a potential strike at a major coal producer which
would likely result in a significant price increase.
This type of inventory is: - Answer hedging
Scholastic, the book publisher, has their suppliers, book printers, manufacture millions of Harry
Potter books ahead of time so customers can have instant availability on the launch date. This
type of inventory is: - Answer anticipation
A company which sources raw materials and components from overseas will hold extra
inventory of these items due to a mismatch between timing of customer demand and supply
chain lead times - Answer transportation
A computer manufacture receives 20,000 computer mice in bulk from an upstream supplier,
gradually uses them up over time, then receives another bulk shipment of 20,000 computer
mice - Answer cycle stock
The owner of a vending machine company has weekly stops to check the soda machine at NC
State. She checks inventory levels and fills the machine back up to its full restocking level. She is
using which of the following types of independent demand inventory styles? - Answer Periodic
Review System
Mr. Drucker uses a periodic review system to manage the inventory in his dry goods store. He
likes to maintain 15 sacks of sugar on his shelves based on the annual demand figure of 225
