NCSU BUS 370 TEST 3| 80+ ACTUAL QUESTIONS & CORRECT
VERIFIED ANSWERS| LATEST 2025 UPDATE
1. Inventory
correct answer > Those stocks or items used to support production (raw materials and
work-in process items), supporting activities (maintenance, repair and operations) and customer
service (finished goods and spare parts)
2. Cycle Stock Inventories
correct answer > Components or products that are received in bulk by a downstream
partner, gradually used up, and then replenished
3. Safety Stock Inventories
correct answer > Extra inventory that companies hold to protect themselves against
uncertainties in either demand or replenishment time
4. Anticipation Inventories
correct answer > Held in anticipation of customer demand
5. Hedging Inventories
correct answer > Form of inventory buildup to butter against a potential event (strike, price
increase, civil unrest). Involves speculation to hedge against events that could severely impact the
company's strategic initiatives.
6. Transportation Inventories
correct answer > Inventories that is moving from one link in the supply chain to
another. Inventory that is "in the pipeline."
7. Smoothing Inventories
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, correct answer > Inventories used to smooth out ditterences between upstream production
levels and downstream demand.
8. safety stock, hedge inventory driver
correct answer > Uncertainty in supply or demand
9. Cycle stock driver
correct answer > Mismatch between downstream partner's demand and most eflcient
production or shipment volumes for upstream partner
10. Smoothing inventory driver
correct answer > Mismatch between downstream demand levels and upstream produc-
tion capacity
11. Anticipation inventory, transportation inventory driver
correct answer > Mismatch between timing of customer demand and supply chain
lead times
12. Independent Demand Inventory
correct answer > Inventory items with demand levels that are beyond a company's
complete control.
13. Dependent Demand Inventory
correct answer > inventory items whose demand levels are tied directly to a compa- ny's
planned production of another item
14. Continuous Review
correct answer > An inventory system used to manage independent demand inventory. The
inventory level for an item is constantly monitored, and when the reorder point is reached, an order is
released.
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VERIFIED ANSWERS| LATEST 2025 UPDATE
1. Inventory
correct answer > Those stocks or items used to support production (raw materials and
work-in process items), supporting activities (maintenance, repair and operations) and customer
service (finished goods and spare parts)
2. Cycle Stock Inventories
correct answer > Components or products that are received in bulk by a downstream
partner, gradually used up, and then replenished
3. Safety Stock Inventories
correct answer > Extra inventory that companies hold to protect themselves against
uncertainties in either demand or replenishment time
4. Anticipation Inventories
correct answer > Held in anticipation of customer demand
5. Hedging Inventories
correct answer > Form of inventory buildup to butter against a potential event (strike, price
increase, civil unrest). Involves speculation to hedge against events that could severely impact the
company's strategic initiatives.
6. Transportation Inventories
correct answer > Inventories that is moving from one link in the supply chain to
another. Inventory that is "in the pipeline."
7. Smoothing Inventories
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12
, correct answer > Inventories used to smooth out ditterences between upstream production
levels and downstream demand.
8. safety stock, hedge inventory driver
correct answer > Uncertainty in supply or demand
9. Cycle stock driver
correct answer > Mismatch between downstream partner's demand and most eflcient
production or shipment volumes for upstream partner
10. Smoothing inventory driver
correct answer > Mismatch between downstream demand levels and upstream produc-
tion capacity
11. Anticipation inventory, transportation inventory driver
correct answer > Mismatch between timing of customer demand and supply chain
lead times
12. Independent Demand Inventory
correct answer > Inventory items with demand levels that are beyond a company's
complete control.
13. Dependent Demand Inventory
correct answer > inventory items whose demand levels are tied directly to a compa- ny's
planned production of another item
14. Continuous Review
correct answer > An inventory system used to manage independent demand inventory. The
inventory level for an item is constantly monitored, and when the reorder point is reached, an order is
released.
https://www.stuvia.com/user/successguarantee 2/
12
