OPSM TEST 2 VERIFIED ACCURATE ANSWERS
In ROP, if demand and lead time are both constant, the safety stock would be zero -
Answers -True
Two bin system is a type of reorder point model. - Answers -True
A tire dealer would be using single period models to replenish inventory - Answers -
False
Which one of the following is not a reason for holding inventory: - Answers -a. To
decouple stages of production
b. As a hedge against inflation
c. To take advantage of quality discounts
d. To meet projected demands
e. To increase demand (correct)
Which one of the following describes the relation between ordering cost and holding
costs: - Answers -1. The two are always equal to EQQ
2. They have inverse relationship i.e. when one increases the other decreases and vice
versa
Two keys for effective supply chain management are information sharing and goal
sharing: - Answers -True
Due to increasing use of outsourcing, many companies have reduced their need for
supply chain management. - Answers -False
Ethics and ethical behavior are important aspects for purchasing. - Answers -True
The main goal in purchasing should always be to obtain the lowest price. - Answers -
False
Which term refers to avoiding warehouse storage during shipping? - Answers -Cross
decking
Which factor is not generally considered when performing a vendor analysis? -
Answers -1. Flexibility
2. Price
3. reputation
4. employees (Correct)
5. location
How does information flow in supply chain? - Answers -Both up and down the chain
In ROP, if demand and lead time are both constant, the safety stock would be zero -
Answers -True
Two bin system is a type of reorder point model. - Answers -True
A tire dealer would be using single period models to replenish inventory - Answers -
False
Which one of the following is not a reason for holding inventory: - Answers -a. To
decouple stages of production
b. As a hedge against inflation
c. To take advantage of quality discounts
d. To meet projected demands
e. To increase demand (correct)
Which one of the following describes the relation between ordering cost and holding
costs: - Answers -1. The two are always equal to EQQ
2. They have inverse relationship i.e. when one increases the other decreases and vice
versa
Two keys for effective supply chain management are information sharing and goal
sharing: - Answers -True
Due to increasing use of outsourcing, many companies have reduced their need for
supply chain management. - Answers -False
Ethics and ethical behavior are important aspects for purchasing. - Answers -True
The main goal in purchasing should always be to obtain the lowest price. - Answers -
False
Which term refers to avoiding warehouse storage during shipping? - Answers -Cross
decking
Which factor is not generally considered when performing a vendor analysis? -
Answers -1. Flexibility
2. Price
3. reputation
4. employees (Correct)
5. location
How does information flow in supply chain? - Answers -Both up and down the chain
