TFC FINAL EXAM PRACTICE TEST QUESTIONS AND ANSWERS
From the warehousing report in TFC:
Capacity of your raw material warehouse is 2,000 pallet locations.
Usage of your raw material warehouse is 1,940 pallet locations.
Which statement is most accurate?
A. There should be no overflow since usage is less than capacity.
B. Overflow is possible because usage is an average and demand is variable.
C. Cube utilization will be approximately 10%.
D. The inbound warehouse handling cost will automatically decrease. - CORRECT ANSWER✅✅B.
Overflow is possible because usage is an average and demand is variable.
Availability for Cartons 1L drops from 98% to 86%. No other settings (safety stock, production interval,
etc.) are changed.
What is the most likely consequence?
A. Service level for products that use Cartons 1L will decrease.
B. Service level for those products will remain unchanged.
C. Finished goods warehouse space will immediately increase.
D. Shelf-life attained for those products will automatically improve. - CORRECT ANSWER✅✅A. Service
level for products that use Cartons 1L will decrease.
TFC increases the safety stock for all packaging components from 1 week to 3 weeks. No other changes
are made.
Which outcome is most likely?
A. Inbound warehouse space requirements will increase.
B. Component stock value will decrease.
C. Component availability will decrease.
D. Supplier reliability indicators will automatically improve. - CORRECT ANSWER✅✅A. Inbound
warehouse space requirements will increase.
, A supplier's achieved delivery reliability for a key juice concentrate falls from 97% to 85%, which is
below the negotiated level.
Which response is most appropriate in TFC (with no contract renegotiation)?
A. Lower safety stock for that concentrate to save space.
B. Raise safety stock for that concentrate to buffer unreliability.
C. Reduce the production interval for all products.
D. Reduce the shelf-life promise to customers. - CORRECT ANSWER✅✅B. Raise safety stock for that
concentrate to buffer unreliability.
TFC increases the production interval for all SKUs from 4 days to 12 days. No other decisions are
changed (same demand, safety stock, etc.).
What is the most likely effect?
A. Total number of bottling changeovers per period will decrease.
B. Outbound warehouse space usage will decrease.
C. Product obsoletes will automatically decrease.
D. Supplier lead times will shorten. - CORRECT ANSWER✅✅A. Total number of bottling changeovers per
period will decrease.
Same change: production interval increases from 4 days to 12 days for all SKUs. No other changes.
Which additional effect do you expect?
A. Average finished goods inventory will increase.
B. Average finished goods inventory will decrease.
C. Component safety stock requirements will automatically fall.
D. Supplier reliability indices will immediately improve. - CORRECT ANSWER✅✅A. Average finished
goods inventory will increase.
For Sunny Citrus 1L:
Shelf life of the product: 16 weeks.
Shelf-life promise to customers: 75%.
Current safety stock: 2 weeks.
From the warehousing report in TFC:
Capacity of your raw material warehouse is 2,000 pallet locations.
Usage of your raw material warehouse is 1,940 pallet locations.
Which statement is most accurate?
A. There should be no overflow since usage is less than capacity.
B. Overflow is possible because usage is an average and demand is variable.
C. Cube utilization will be approximately 10%.
D. The inbound warehouse handling cost will automatically decrease. - CORRECT ANSWER✅✅B.
Overflow is possible because usage is an average and demand is variable.
Availability for Cartons 1L drops from 98% to 86%. No other settings (safety stock, production interval,
etc.) are changed.
What is the most likely consequence?
A. Service level for products that use Cartons 1L will decrease.
B. Service level for those products will remain unchanged.
C. Finished goods warehouse space will immediately increase.
D. Shelf-life attained for those products will automatically improve. - CORRECT ANSWER✅✅A. Service
level for products that use Cartons 1L will decrease.
TFC increases the safety stock for all packaging components from 1 week to 3 weeks. No other changes
are made.
Which outcome is most likely?
A. Inbound warehouse space requirements will increase.
B. Component stock value will decrease.
C. Component availability will decrease.
D. Supplier reliability indicators will automatically improve. - CORRECT ANSWER✅✅A. Inbound
warehouse space requirements will increase.
, A supplier's achieved delivery reliability for a key juice concentrate falls from 97% to 85%, which is
below the negotiated level.
Which response is most appropriate in TFC (with no contract renegotiation)?
A. Lower safety stock for that concentrate to save space.
B. Raise safety stock for that concentrate to buffer unreliability.
C. Reduce the production interval for all products.
D. Reduce the shelf-life promise to customers. - CORRECT ANSWER✅✅B. Raise safety stock for that
concentrate to buffer unreliability.
TFC increases the production interval for all SKUs from 4 days to 12 days. No other decisions are
changed (same demand, safety stock, etc.).
What is the most likely effect?
A. Total number of bottling changeovers per period will decrease.
B. Outbound warehouse space usage will decrease.
C. Product obsoletes will automatically decrease.
D. Supplier lead times will shorten. - CORRECT ANSWER✅✅A. Total number of bottling changeovers per
period will decrease.
Same change: production interval increases from 4 days to 12 days for all SKUs. No other changes.
Which additional effect do you expect?
A. Average finished goods inventory will increase.
B. Average finished goods inventory will decrease.
C. Component safety stock requirements will automatically fall.
D. Supplier reliability indices will immediately improve. - CORRECT ANSWER✅✅A. Average finished
goods inventory will increase.
For Sunny Citrus 1L:
Shelf life of the product: 16 weeks.
Shelf-life promise to customers: 75%.
Current safety stock: 2 weeks.
