NCSU BUS 370 – North Carolina State University – 2026 – Complete Test 3 Study Guide with Verified Questions and Answers

NCSU BUS 370 TEST 3| 80+ ACTUAL QUESTIONS & CORRECT
VERIFIED ANSWERS| LATEST 2026 UPDATE



1. Inventory

n,correct answer > Those stocks or items used to support production (raw materials and work-in process
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,



items), supporting activities (maintenance, repair and operations) and customer service (finished goods and
n, n, n, n, n, n, n, n, n, n, n, n, n,



spare parts)
n, n,




2. Cycle Stock Inventories
n, n,




n, correct answer > Components or products that are received in bulk by a downstream partner,
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,



n, gradually used up, and then replenished
n, n, n, n, n,




3. Safety Stock Inventories
n, n,




n, correct answer > Extra inventory that companies hold to protect themselves against uncertainties in either
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,



n, demand or replenishment time
n, n, n,




4. Anticipation Inventories n,




n, correct answer > Held in anticipation of customer demand
n, n, n, n, n, n, n, n, n,




5. Hedging Inventories n,




n, correct answer > Form of inventory buildup to butter against a potential event (strike, price increase, civil
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,



n, unrest). Involves speculation to hedge against events that could severely impact the company's strategic initiatives.
n, n, n, n, n, n, n, n, n, n, n, n, n, n,




6. Transportation Inventories n,




n, correct answer > Inventories that is moving from one link in the supply chain to another. Inventory that
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,



n, is "in the pipeline."
n, n, n,




7. Smoothing Inventories n,




n, correct answer > Inventories used to smooth out ditterences between upstream production levels and
n, n, n, n , n, n, n, n, n, n, n, n, n, n,



n, downstream demand. n,



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, 8. safety stock, hedge inventory driver n, n, n, n,




correct answer > Uncertainty in supply or demand
n, n, n, n, n , n, n, n, n,




9. Cycle stock driver n, n,




n, correct answer > Mismatch between downstream partner's demand and most eflcient production or
n, n, n, n, n, n, n, n, n, n, n, n, n,



n, shipment volumes for upstream partner
n, n, n, n,




10. Smoothing inventory driver n, n,




n, correct answer > Mismatch between downstream demand levels and upstream produc- tion
n, n, n, n, n, n, n, n, n, n, n, n,



n, capacity

11. Anticipation inventory, transportation inventory driver n, n, n, n,




n, correct answer > Mismatch between timingof customer demand and supply chain lead times
n, n, n, n, n, n, n, n, n, n, n, n, n, n,




12. Independent Demand Inventory n, n,




n, correct answer > Inventory items with demand levels that are beyond a company's complete control.
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,




13. Dependent Demand Inventory n, n,




n, correct answer > inventory items whose demand levels are tied directly to a compa- ny's planned
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,



n, production of another item n, n, n,




14. Continuous Review n,




n,correct answer > An inventory system used to manage independent demand inventory. The inventory level
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,



n, for an item is constantly monitored, and when the reorder point is reached, an order is released.
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,




15. Invested funds, storage space, insurance n, n, n, n,




correct answer > Costs that increase as order size go up
n, n, n, n, n, n, n, n, n, n, n, n,




16. Ordering, stock-out, transportation, Potential for quantity discounts n, n, n, n, n, n,




n, correct answer > n, n, n, n , Costs that decrease as order size goes up
n, n, n, n, n, n, n,




17. Variance
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