ITSCM 306 M9 PRACTICE QUIZ
QUESTIONS AND CORRECT
ANSWERS 2026-2027!! | Verified
Questions
ITSCM 306 M9 PRACTICE QUIZ QUESTIONS AND |
Comprehensive Examination
ITSCM 306 M9 PRACTICE QUIZ QUESTIONS AND
CORRECT ANSWERS 2026-2027!! actual exam preparation
document with verified questions, complete answers, and
INTRODUCTION
This document is an important and very helpful preparation
resource for ITSCM 306 M9 PRACTICE QUIZ QUESTIONS
AND CORRECT ANSWERS 2026-2027!!. Every item uses a
focused exam stem, four response options, a keyed response,
and a clear rationale, making it easier to understand the
subject, spot distractors, and build real exam confidence.
Page 1
, Question 1
A service process has a bottleneck with a utilization of 85%. If demand
increases by 10% and no capacity is added, what happens to the average flow
time according to queueing theory?
A. It increases linearly with demand.
B. It increases exponentially as utilization approaches 100%.
C. It remains constant because the bottleneck is not fully utilized.
D. It decreases due to economies of scale.
Correct Answer: B - It increases exponentially as utilization
approaches 100%.
RATIONALE
Queueing theory shows that as utilization approaches 1, wait time
grows nonlinearly (often exponentially for M/M/1). A 10% demand
increase raises utilization, causing a disproportionate rise in flow time.
Options A, C, and D misstate the nonlinear relationship.
Question 2
In a lean system, which of the following best explains why reducing setup
times is critical for achieving one-piece flow?
A. It allows larger batch sizes to improve machine utilization.
B. It enables smaller batch sizes and more frequent changeovers without
capacity loss.
C. It reduces the need for total productive maintenance.
D. It increases the economic order quantity.
Correct Answer: B - It enables smaller batch sizes and more
frequent changeovers without capacity loss.
Page 2
, RATIONALE
Reducing setup times (SMED) makes small batches economically
feasible, supporting one-piece flow and reducing inventory. Larger
batches (A) contradict lean, TPM (C) is still needed, and EOQ (D) is a
traditional inventory model not aligned with lean.
Question 3
A company uses a p-chart to monitor defect rates. The average proportion
defective is 0.04, and sample size is 100. What is the upper control limit (UCL)
at 3-sigma?
A. 0.04 + 3*sqrt(0.04*0.96/100) = 0.0988
B. 0.04 + 3*sqrt(0.04*0.96) = 0.628
C. 0.04 + 3*(0.04/10) = 0.052
D. 0.04 + 3*sqrt(0.04/100) = 0.10
Correct Answer: A - 0.04 + 3*sqrt(0.04*0.96/100) = 0.0988
RATIONALE
The standard deviation of proportion is sqrt(p(1-p)/n). With p=0.04,
n=100, sigma=0.0196, UCL=0.04+3*0.0196=0.0988. Option B omits
division by n, C miscomputes, D uses incorrect formula.
Question 4
Which forecasting method is most appropriate for a product with a stable trend
and no seasonality, when historical data is limited?
A. Winter's exponential smoothing
B. Simple moving average
C. Holt's linear exponential smoothing
D. Naive approach
Correct Answer: C - Holt's linear exponential smoothing
Page 3
, RATIONALE
Holt's method captures trend without seasonality and works with
limited data. Winter's (A) requires seasonality, moving average (B)
lags trends, and naive (D) ignores trend.
Question 5
A firm uses a continuous review (Q,R) inventory system. If lead time demand
is normally distributed with mean 200 and standard deviation 40, what reorder
point yields a 95% service level? (z=1.645)
A. 200
B. 234
C. 266
D. 400
Correct Answer: C - 266
RATIONALE
Reorder point = mean demand during lead time + z*sigma = 200 +
1.645*40 = 265.8 266. Options A and B ignore safety stock or
miscalculate z, D doubles mean.
Question 6
In aggregate planning, which strategy is most effective for matching supply
with demand when demand is highly seasonal and inventory carrying costs are
high?
A. Level strategy
B. Chase strategy
C. Mixed strategy with overtime
D. Subcontracting
Correct Answer: B - Chase strategy
Page 4
QUESTIONS AND CORRECT
ANSWERS 2026-2027!! | Verified
Questions
ITSCM 306 M9 PRACTICE QUIZ QUESTIONS AND |
Comprehensive Examination
ITSCM 306 M9 PRACTICE QUIZ QUESTIONS AND
CORRECT ANSWERS 2026-2027!! actual exam preparation
document with verified questions, complete answers, and
INTRODUCTION
This document is an important and very helpful preparation
resource for ITSCM 306 M9 PRACTICE QUIZ QUESTIONS
AND CORRECT ANSWERS 2026-2027!!. Every item uses a
focused exam stem, four response options, a keyed response,
and a clear rationale, making it easier to understand the
subject, spot distractors, and build real exam confidence.
Page 1
, Question 1
A service process has a bottleneck with a utilization of 85%. If demand
increases by 10% and no capacity is added, what happens to the average flow
time according to queueing theory?
A. It increases linearly with demand.
B. It increases exponentially as utilization approaches 100%.
C. It remains constant because the bottleneck is not fully utilized.
D. It decreases due to economies of scale.
Correct Answer: B - It increases exponentially as utilization
approaches 100%.
RATIONALE
Queueing theory shows that as utilization approaches 1, wait time
grows nonlinearly (often exponentially for M/M/1). A 10% demand
increase raises utilization, causing a disproportionate rise in flow time.
Options A, C, and D misstate the nonlinear relationship.
Question 2
In a lean system, which of the following best explains why reducing setup
times is critical for achieving one-piece flow?
A. It allows larger batch sizes to improve machine utilization.
B. It enables smaller batch sizes and more frequent changeovers without
capacity loss.
C. It reduces the need for total productive maintenance.
D. It increases the economic order quantity.
Correct Answer: B - It enables smaller batch sizes and more
frequent changeovers without capacity loss.
Page 2
, RATIONALE
Reducing setup times (SMED) makes small batches economically
feasible, supporting one-piece flow and reducing inventory. Larger
batches (A) contradict lean, TPM (C) is still needed, and EOQ (D) is a
traditional inventory model not aligned with lean.
Question 3
A company uses a p-chart to monitor defect rates. The average proportion
defective is 0.04, and sample size is 100. What is the upper control limit (UCL)
at 3-sigma?
A. 0.04 + 3*sqrt(0.04*0.96/100) = 0.0988
B. 0.04 + 3*sqrt(0.04*0.96) = 0.628
C. 0.04 + 3*(0.04/10) = 0.052
D. 0.04 + 3*sqrt(0.04/100) = 0.10
Correct Answer: A - 0.04 + 3*sqrt(0.04*0.96/100) = 0.0988
RATIONALE
The standard deviation of proportion is sqrt(p(1-p)/n). With p=0.04,
n=100, sigma=0.0196, UCL=0.04+3*0.0196=0.0988. Option B omits
division by n, C miscomputes, D uses incorrect formula.
Question 4
Which forecasting method is most appropriate for a product with a stable trend
and no seasonality, when historical data is limited?
A. Winter's exponential smoothing
B. Simple moving average
C. Holt's linear exponential smoothing
D. Naive approach
Correct Answer: C - Holt's linear exponential smoothing
Page 3
, RATIONALE
Holt's method captures trend without seasonality and works with
limited data. Winter's (A) requires seasonality, moving average (B)
lags trends, and naive (D) ignores trend.
Question 5
A firm uses a continuous review (Q,R) inventory system. If lead time demand
is normally distributed with mean 200 and standard deviation 40, what reorder
point yields a 95% service level? (z=1.645)
A. 200
B. 234
C. 266
D. 400
Correct Answer: C - 266
RATIONALE
Reorder point = mean demand during lead time + z*sigma = 200 +
1.645*40 = 265.8 266. Options A and B ignore safety stock or
miscalculate z, D doubles mean.
Question 6
In aggregate planning, which strategy is most effective for matching supply
with demand when demand is highly seasonal and inventory carrying costs are
high?
A. Level strategy
B. Chase strategy
C. Mixed strategy with overtime
D. Subcontracting
Correct Answer: B - Chase strategy
Page 4
