Operations and Supply Chain
Management-MOD 12 Latest Premium Exam
Questions and Answers with Verified
Solutions | Latest Updated 2026
peak demand, which occurs in response to planned
events such
as advertising, publicity or promotion. The
release
of a popular game franchise's latest
version often
causes peak demand for a few days or
weeks.
Seasonal demand, as shoppers adjust their purchase velocity
in line
with holidays, especially Christmas. But
Halloween,
Thanksgiving and even St. Patrick's Day
also create
seasonal demand for certain kinds of
merchandise.
unexpected demand, which occurs due to a usually-unexpected
event.
For example, an underdog school may
upset a
favorite during the NCAA's basketball
tournament,
causing a run on their merchandise.
,What is the underlying reason that To keep production levels constant
companies need to build up Correct. Most companies try to keep labor
inventory for peak demand and and
seasonal demand? machine utilization relatively constant
throughout
the year. Peak and seasonal demand
occurs at a
known point in time, so companies can
keep
production steady and build up inventory.
The best known transportation shipping in full truck load quantities rather
discount involves.... than less
than truck load amounts. The same can be
said for
shipping a full rail car versus less than a
full rail car.
When Amazon.com offers its False
customers free shipping on orders Correct. Offering free shipping for
of purchasing a
$25 or more, this is an example of certain dollar amount is an example of a
quantity discounts. transportation discount.
True
, Delta, Southwest, and other Fuel
airlines Correct. Oil is a commodity, and the price
engage in hedging against changes
possible depending on demand and supply. Fuel is
price increases. Which of the a large
following is a likely example of part of the operating expense for airlines,
something an airline would hedge? and they
engage in hedging, that is, they purchase
contracts
to lock in fuel prices for a certain period of
time.
Raw materials: These parts and materials are obtained
from
suppliers and are used in the production
process.
Work-in-process (WIP): These are partly finished parts,
components,
subassemblies, or modules.
Finished goods: Items are ready to ship to the customer.
No more
work is required.
Replacement parts inventory: These are maintained to replace other
parts in
machinery or equipment as those parts
wear out.
Management-MOD 12 Latest Premium Exam
Questions and Answers with Verified
Solutions | Latest Updated 2026
peak demand, which occurs in response to planned
events such
as advertising, publicity or promotion. The
release
of a popular game franchise's latest
version often
causes peak demand for a few days or
weeks.
Seasonal demand, as shoppers adjust their purchase velocity
in line
with holidays, especially Christmas. But
Halloween,
Thanksgiving and even St. Patrick's Day
also create
seasonal demand for certain kinds of
merchandise.
unexpected demand, which occurs due to a usually-unexpected
event.
For example, an underdog school may
upset a
favorite during the NCAA's basketball
tournament,
causing a run on their merchandise.
,What is the underlying reason that To keep production levels constant
companies need to build up Correct. Most companies try to keep labor
inventory for peak demand and and
seasonal demand? machine utilization relatively constant
throughout
the year. Peak and seasonal demand
occurs at a
known point in time, so companies can
keep
production steady and build up inventory.
The best known transportation shipping in full truck load quantities rather
discount involves.... than less
than truck load amounts. The same can be
said for
shipping a full rail car versus less than a
full rail car.
When Amazon.com offers its False
customers free shipping on orders Correct. Offering free shipping for
of purchasing a
$25 or more, this is an example of certain dollar amount is an example of a
quantity discounts. transportation discount.
True
, Delta, Southwest, and other Fuel
airlines Correct. Oil is a commodity, and the price
engage in hedging against changes
possible depending on demand and supply. Fuel is
price increases. Which of the a large
following is a likely example of part of the operating expense for airlines,
something an airline would hedge? and they
engage in hedging, that is, they purchase
contracts
to lock in fuel prices for a certain period of
time.
Raw materials: These parts and materials are obtained
from
suppliers and are used in the production
process.
Work-in-process (WIP): These are partly finished parts,
components,
subassemblies, or modules.
Finished goods: Items are ready to ship to the customer.
No more
work is required.
Replacement parts inventory: These are maintained to replace other
parts in
machinery or equipment as those parts
wear out.
