UARK SCMT 2103 SCRIPTED ANSWERS AND
QUESTIONS SET A+
✔✔Periods of supply - ✔✔Which of the following metrics tells you how many periods it
will take to sell through your inventory on hand?
✔✔add up the sales for the category and divide by the total inventory level for the
category. - ✔✔If you wanted to assess inventory turns of a category with multiple SKUs,
the best way to do that would be to ________________:
✔✔assets - ✔✔ROA is profit divided by _____.
✔✔increase - ✔✔One of the effects of adding distribution centers is reducing store lead
time and inventory. If store inventory is reduced, the ROA will _______.
✔✔fixed; variable - ✔✔One of the direct effects of investing in third party logistics
provider is a reduction of _________ costs and an increase in ___________ costs.
✔✔shortens - ✔✔Having more distribution centers __________ the lead time from the
store faces.
✔✔I & III - ✔✔By spending less on transportation, one will most likely
I: Increase the lead time
II: Decrease the lead time
III: Increase the variability of lead time
IV: Decrease the variability of lead time.
✔✔increases - ✔✔When the inventory level increases, the fill rate _________.
✔✔ROA - ✔✔One of the direct effects of an increase in transportation cost is to reduce
_____.
✔✔ROA - ✔✔The direct effect of an increase in inventory is reduction in __________.
, ✔✔1.85 - ✔✔Consider the following analysis for four SKUs in a product category. Which
is the best estimate of the turns of the category as a whole?
SKU-Annual Sales-Average Inventory- Inventory Turns
SKU 1 1,600 110 14.55
SKU 2 18,000 10,000 1.80
SKU 3 18,000 10,000 1.80
SKU 4 18,000 10,000 1.80
Totals 55,600 30,110 ?
✔✔The logistics lead time and the customer's order cycle - ✔✔The lead time gap is
defined as the difference between ________________________.
✔✔shorter than - ✔✔One of the fundamental challenges faced by supply chain
managers is the gap created when the customer's order cycle is ___________ than the
total lead time.
✔✔increases - ✔✔As supply chains become longer, supply uncertainty
_____________.
✔✔from when an order is placed until it's actually received and ready for use or sale -
✔✔Logistics lead time is the time ________________.
✔✔as the planning horizon decreases - ✔✔Forecast error is expected to decrease
___________________.
✔✔causal models require input from multiple forecasters - ✔✔Which is NOT a
disadvantage of causal models relative to time series models?
✔✔long term; short term - ✔✔Causal models might best be used for ______ forecasting
while time series model are mostly used for ________ forecasting.
✔✔judgment capturing - ✔✔Bob is really good at forecasting demand for televisions,
but he couldn't tell you how he does it, exactly. The ____________ method would be a
good approach for helping Bob quantify his method.
✔✔qualitative - ✔✔Judgmental methods are __________ forecasting approaches.
✔✔causal; time series - ✔✔Two major classifications of quantitative forecasting
methods are _______ and ________ models.
QUESTIONS SET A+
✔✔Periods of supply - ✔✔Which of the following metrics tells you how many periods it
will take to sell through your inventory on hand?
✔✔add up the sales for the category and divide by the total inventory level for the
category. - ✔✔If you wanted to assess inventory turns of a category with multiple SKUs,
the best way to do that would be to ________________:
✔✔assets - ✔✔ROA is profit divided by _____.
✔✔increase - ✔✔One of the effects of adding distribution centers is reducing store lead
time and inventory. If store inventory is reduced, the ROA will _______.
✔✔fixed; variable - ✔✔One of the direct effects of investing in third party logistics
provider is a reduction of _________ costs and an increase in ___________ costs.
✔✔shortens - ✔✔Having more distribution centers __________ the lead time from the
store faces.
✔✔I & III - ✔✔By spending less on transportation, one will most likely
I: Increase the lead time
II: Decrease the lead time
III: Increase the variability of lead time
IV: Decrease the variability of lead time.
✔✔increases - ✔✔When the inventory level increases, the fill rate _________.
✔✔ROA - ✔✔One of the direct effects of an increase in transportation cost is to reduce
_____.
✔✔ROA - ✔✔The direct effect of an increase in inventory is reduction in __________.
, ✔✔1.85 - ✔✔Consider the following analysis for four SKUs in a product category. Which
is the best estimate of the turns of the category as a whole?
SKU-Annual Sales-Average Inventory- Inventory Turns
SKU 1 1,600 110 14.55
SKU 2 18,000 10,000 1.80
SKU 3 18,000 10,000 1.80
SKU 4 18,000 10,000 1.80
Totals 55,600 30,110 ?
✔✔The logistics lead time and the customer's order cycle - ✔✔The lead time gap is
defined as the difference between ________________________.
✔✔shorter than - ✔✔One of the fundamental challenges faced by supply chain
managers is the gap created when the customer's order cycle is ___________ than the
total lead time.
✔✔increases - ✔✔As supply chains become longer, supply uncertainty
_____________.
✔✔from when an order is placed until it's actually received and ready for use or sale -
✔✔Logistics lead time is the time ________________.
✔✔as the planning horizon decreases - ✔✔Forecast error is expected to decrease
___________________.
✔✔causal models require input from multiple forecasters - ✔✔Which is NOT a
disadvantage of causal models relative to time series models?
✔✔long term; short term - ✔✔Causal models might best be used for ______ forecasting
while time series model are mostly used for ________ forecasting.
✔✔judgment capturing - ✔✔Bob is really good at forecasting demand for televisions,
but he couldn't tell you how he does it, exactly. The ____________ method would be a
good approach for helping Bob quantify his method.
✔✔qualitative - ✔✔Judgmental methods are __________ forecasting approaches.
✔✔causal; time series - ✔✔Two major classifications of quantitative forecasting
methods are _______ and ________ models.
