©BRIGHTSTARS EXAM SOLUTIONS
11/16/2024 10:16 AM
SCM3301 CH11 Exam Questions With
Correct Answers
_____ is when the expected cost of a shortage equals the expected cost of having excess units
within a single-period inventory system. - answer✔target service level
_____ is inventory items whose demand levels are beyond a company's complete control. -
answer✔independent demand inventory
the target stocking point is _____ - answer✔when the expected cost of shortage equals the
expected cost of having excess units within a single-period inventory system
hedge inventory - answer✔a form of inventory buildup to buffer against some event that may
not happen
in the continuous review system, _____ is the cost of placing an order, regardless of the order
quantity. - answer✔S
in the continuous review system, H is _____. - answer✔the cost of holding a single unit in
inventory for a year
inventory pooling is _____. - answer✔holding safety stock in a single location instead of
multiple locations
one variable is _____, which states that the inventory item of interest has a constant demand
per period. - answer✔demand
safety stock is _____. - answer✔extra inventory that a company hold to protect itself against
uncertainties in either demand or replenishment time
in the continuous review system, _____ is the number of periods that must pass before a
replenishment order arrives. - answer✔lead time
a periodic review system is _____. - answer✔an inventory system that is used to manage
independent demand inventory
1|Page
11/16/2024 10:16 AM
SCM3301 CH11 Exam Questions With
Correct Answers
_____ is when the expected cost of a shortage equals the expected cost of having excess units
within a single-period inventory system. - answer✔target service level
_____ is inventory items whose demand levels are beyond a company's complete control. -
answer✔independent demand inventory
the target stocking point is _____ - answer✔when the expected cost of shortage equals the
expected cost of having excess units within a single-period inventory system
hedge inventory - answer✔a form of inventory buildup to buffer against some event that may
not happen
in the continuous review system, _____ is the cost of placing an order, regardless of the order
quantity. - answer✔S
in the continuous review system, H is _____. - answer✔the cost of holding a single unit in
inventory for a year
inventory pooling is _____. - answer✔holding safety stock in a single location instead of
multiple locations
one variable is _____, which states that the inventory item of interest has a constant demand
per period. - answer✔demand
safety stock is _____. - answer✔extra inventory that a company hold to protect itself against
uncertainties in either demand or replenishment time
in the continuous review system, _____ is the number of periods that must pass before a
replenishment order arrives. - answer✔lead time
a periodic review system is _____. - answer✔an inventory system that is used to manage
independent demand inventory
1|Page
