OM 300 Exam 3 Questions with 100% Correct
Answers
One use of inventory is _____.— Correct Answer: to
provide a hedge against inflation
The objective of inventory management is to _____.—
Correct Answer: strike a balance between inventory
investment and customer service
Which of the following types of inventory describes
inventory that has been purchased but not processed?
a. finished-goods inventory
b. work-in-progress inventory
c. raw material inventory
d. maintenance/repair/operating supply inventory—
Correct Answer: c. raw material inventory
What is the cost to prepare a machine or process for
production?— Correct Answer: setup cost
, The difference between the basic EOQ model and the
production order quantity model is that _____.— Correct
Answer: the production order quantity model does not
require the assumption of instantaneous delivery
Extra units that are held in inventory to reduce stockouts
are called _____.— Correct Answer: safety stock
A supply chain ends with _____.— Correct Answer: a
satisfied customer
Which of the following statements is NOT true?
a. Supply chain management describes the
coordination of all supply chain activities, starting with
raw materials, and ending with a satisfied customer.
b. The objective of supply chain management is to
coordinate activities within the supply chain to maximize
the supply chain's competitive advantage and benefits
to the ultimate consumer.
c. A supply chain includes suppliers; manufacturers
and/or service providers; and distributors, wholesalers,
Answers
One use of inventory is _____.— Correct Answer: to
provide a hedge against inflation
The objective of inventory management is to _____.—
Correct Answer: strike a balance between inventory
investment and customer service
Which of the following types of inventory describes
inventory that has been purchased but not processed?
a. finished-goods inventory
b. work-in-progress inventory
c. raw material inventory
d. maintenance/repair/operating supply inventory—
Correct Answer: c. raw material inventory
What is the cost to prepare a machine or process for
production?— Correct Answer: setup cost
, The difference between the basic EOQ model and the
production order quantity model is that _____.— Correct
Answer: the production order quantity model does not
require the assumption of instantaneous delivery
Extra units that are held in inventory to reduce stockouts
are called _____.— Correct Answer: safety stock
A supply chain ends with _____.— Correct Answer: a
satisfied customer
Which of the following statements is NOT true?
a. Supply chain management describes the
coordination of all supply chain activities, starting with
raw materials, and ending with a satisfied customer.
b. The objective of supply chain management is to
coordinate activities within the supply chain to maximize
the supply chain's competitive advantage and benefits
to the ultimate consumer.
c. A supply chain includes suppliers; manufacturers
and/or service providers; and distributors, wholesalers,
