LSCM 3960 Exam 2 quiz with correct answers 100% 2026

LSCM 3960 Exam 2 quiz with correct answers 100% 2026 Pareto Analysis may be used to classify parts, customers, or activities. When determining the pareto segments to classify oarts, you should: - Correct Answer There will rarely be a clean break at the 80% (or 20%) point so your cut-off is subjective; however the general 80-20 relationship still holds. The objective of inventory management is to: - Correct Answer Increase corporate profitability All of the following are reasons for holding inventory EXCEPT: - Correct Answer Inventories eliminate the variation in supply and demand If demand and lead time are constant, only _____________ is necessary. - Correct Answer Cycle stock Which of the following is NOT a principle reason for holding finished goods inventory? - Correct Answer Prevention of production shutdowns due to parts shortages Inventory is an ASSET on the balance sheet and a(n) ____________ on the income statement. - Correct Answer Variable expense Capital cost focuses on the cost of capital tied up in ______________ and the resulting lost opportunity from investing that capital elsewhere. - Correct Answer Inventory Other things being equal, HIGH inventory carrying costs will tend to lead to: - Correct Answer B, C, and D Increasing inventory from 10 to 15 has a greater impact than increasing inventory turns from 1 or 2. - Correct Answer False Which of the following statements about just-in-time (JIT) is FALSE? - Correct Answer JIT programs usually do not impact inventory turnover rates Methods of decreasing inventory related costs include all of the following measures EXCEPT: - Correct Answer Increasing the number of expedited orders Seasonal stocks are NOT influenced by - Correct Answer EOQ Management will automatically achieve least total cost logistics by minimizing inventory carrying costs. - Correct Answer False Batching economics or cycle stocks usually arise from three sources. Which of these is NOT a source? - Correct Answer Demand In the event of an "stock out" at your location, one of the things that could happen is - Correct Answer Extra shipping cost may be incurred A DRP system is usually coupled with a ______________ system in an attempt to manage the flow and timing of both inbound materials and outbound finished goods. - Correct Answer MRP EOQ models exist that inc,due adjustments for volume transportation rates and for quantity discounts. - Correct Answer True WIP inventories are - Correct Answer Associated with manufacturing If demand DECREASES by 13% and the value of each unit DECREASES by 13%, what will happen to the EOQ? (Assume that everything else remains the same). - Correct Answer The EOQ will remain the same Using Wilson's EOQ formula, what will happen to the average inventory level (Q/2) if unit cost is DECREASED by 4.1% and annual demand is INCREASED by 4.1% at the same ti Every? - Correct Answer (Q/2) will increase Assuming the cost to place an order is constant, all other things remaining the same, INCREASING the order quantity (Q) causes total ANNUAL ordering costs to: - Correct Answer Decrease Other things being equal, HIGH inventory carrying costs will tend to lead to: - Correct Answer B, C, and D Increasing inventory turns from 10 to 15 has a greater impact than increasing inventory turns from 1 to 2. - Correct Answer False Each of the following is an inventory holding cost EXCEPT: - Correct Answer Accounting cost EOQ models exist that inc,due adjustments for volume transportation rates and for quantity discounts. - Correct Answer True If you were to "manage" Wilson's EOQ as a means of reducing your company inventories, which variable of Wilson's EOQ would make the most sense to change. - Correct Answer Ordering cost. By using the latest information technology it is possible to substitute information for inventory and other logistics expenses. - Correct Answer True Managers have server all options for software development and implementation. They include: - Correct Answer All of these answers Data synchronization focuses - Correct Answer Timely and accurate updates