BUAD 331 Final Exam Guide Questions/Answer GUARANTEE
A+ 2025/2026
If average daily demand for a product is 5 units and average lead time for
an order to arrive is 7 days, what is the reorder point (ROP) for the
product?
A. 21 units
B. 12 units
C. 7 units
D. 5 units
E. 35 units - E. 35 units
Ted and his friend Matt start a new company called Crabman Auto Parts.
They have heard about agile order fulfillment and are interested in
implementing it to decrease costs. Which of the following best describes
the strategy Crabman Auto Parts should follow to take advantage of agile
order fulfillment?
A, Increase variability of demand by running frequent promotional
campaigns and discounts for select products
B. Purchase off-season products in bulk to take advantage of
manufacturer's discounts
C. Increase complexity in the supply chain to ensure products are made to
automobile manufacturer's strict specifications
D. Synchronize information exchange across the supply chain and form
strategic relationships with key customers and suppliers
E. Select suppliers based on lowest unit purchase price regardless of
delivery reliability - D. Synchronize information exchange across the supply
chain and form strategic relationships with key customers and suppliers
The economic order quantity (EOQ) model aims to:
A. calculate the optimal amount of inventory to be reordered by balancing
ordering costs with carrying costs.
B. minimize inventory costs by eliminating safety stock.
C. minimize total supply chain landed costs.
D. establish the optimal amount of inventory to be reordered by balancing
carrying costs with transportation costs. - A. calculate the optimal amount
of inventory to be reordered by balancing ordering costs with carrying
costs.
,The move to lean and then responsive value creation requires a "paradigm
shift" from a ________ mentality to a customer ________ mentality.
A. Hybrid style, retention
B. Product-focused push, demand-focused pull
C. Demand-focused push, product-focused pull
D. Product-order completion, time-saving - B. Product-focused push,
demand-focused pull
In high-end restaurants, steaks are generally cooked after the wait staff
place the order to the kitchen with customers' preference. Which of the
following techniques best describes the fulfillment of steak orders to the
final customer?
A. Anticipatory
B. Responsive
C. Postpone
D. Lean - B. Responsive
Ted wanted to paint his upstairs hallway. He selected 4 different colors of
brown/ beige and chose "Puppy Paws," which Lowe's mixed for him on site.
This method of order fulfillment is an example of ________.
A. Time postponement
B. Place postponement
C. Logistics postponement
D. Manufacturing or form postponement - D. Manufacturing or form
postponement
Ordering supplies twice per year vs four times per year can result in
_______ due to __________?
A. Shorter lead-times, higher set-up or ordering costs
B. Higher ordering costs, lower transportation costs
C. Higher inventory carrying costs, lower marginal costs
D. Higher carrying costs, higher average inventory levels
E. Lower inventory carrying costs, lower average inventory levels - D.
Higher carrying costs, higher average inventory levels
What negative outcomes can result from large lot-sized, long lead-time
operations?
A. Customers don't want the items.
B. The items are in places and at times customers don't want them.
C. Unsold products are sold at reduced prices or scrapped altogether.
, D. All of the above - D. All of the above
Procurement, conversion, and logistics are activities that must be done to
fulfill the exchange commitment by creating form, time, and place value.
A. True
B. False - A. True
Which of the following factors typically contribute to increased delays and
variability of lead times in the global supply chain?
A. A lean fulfillment model
B. An agile fulfillment model
C. The use of cross-docking and flexible fulfillment strategies
D. Complexity required for movement of goods between countries
E. Complexity of exchanging different currencies - A. A lean fulfillment
model
Noodles & Company uses Coca-Cola Freestyle beverage machines that
allow people to select from more than 100 regular and low-calorie brands.
What kind of order fulfillment technique is Coca-Cola Freestyle beverage
machine using?
A. Hybrid lean and agile
B. EOQ
C. Lean
D. Agile - A. Hybrid lean and agile
What negative impact can result from large lot, long lead-time operations?
A. Customers are overjoyed.
B. The items are in places and at times customers don't want them.
C. The company's sales increase too much.
D. The company's profits increase too much. - B. The items are in places
and at times customers don't want them.
What key product type is marked by contribution margins of 20 to 60
percent, one- or two-day lead times, and high product variety?
A. Functional
B. Raw materials
C. Innovative
D. Luxury
E. Purses - C. Innovative
A+ 2025/2026
If average daily demand for a product is 5 units and average lead time for
an order to arrive is 7 days, what is the reorder point (ROP) for the
product?
A. 21 units
B. 12 units
C. 7 units
D. 5 units
E. 35 units - E. 35 units
Ted and his friend Matt start a new company called Crabman Auto Parts.
They have heard about agile order fulfillment and are interested in
implementing it to decrease costs. Which of the following best describes
the strategy Crabman Auto Parts should follow to take advantage of agile
order fulfillment?
A, Increase variability of demand by running frequent promotional
campaigns and discounts for select products
B. Purchase off-season products in bulk to take advantage of
manufacturer's discounts
C. Increase complexity in the supply chain to ensure products are made to
automobile manufacturer's strict specifications
D. Synchronize information exchange across the supply chain and form
strategic relationships with key customers and suppliers
E. Select suppliers based on lowest unit purchase price regardless of
delivery reliability - D. Synchronize information exchange across the supply
chain and form strategic relationships with key customers and suppliers
The economic order quantity (EOQ) model aims to:
A. calculate the optimal amount of inventory to be reordered by balancing
ordering costs with carrying costs.
B. minimize inventory costs by eliminating safety stock.
C. minimize total supply chain landed costs.
D. establish the optimal amount of inventory to be reordered by balancing
carrying costs with transportation costs. - A. calculate the optimal amount
of inventory to be reordered by balancing ordering costs with carrying
costs.
,The move to lean and then responsive value creation requires a "paradigm
shift" from a ________ mentality to a customer ________ mentality.
A. Hybrid style, retention
B. Product-focused push, demand-focused pull
C. Demand-focused push, product-focused pull
D. Product-order completion, time-saving - B. Product-focused push,
demand-focused pull
In high-end restaurants, steaks are generally cooked after the wait staff
place the order to the kitchen with customers' preference. Which of the
following techniques best describes the fulfillment of steak orders to the
final customer?
A. Anticipatory
B. Responsive
C. Postpone
D. Lean - B. Responsive
Ted wanted to paint his upstairs hallway. He selected 4 different colors of
brown/ beige and chose "Puppy Paws," which Lowe's mixed for him on site.
This method of order fulfillment is an example of ________.
A. Time postponement
B. Place postponement
C. Logistics postponement
D. Manufacturing or form postponement - D. Manufacturing or form
postponement
Ordering supplies twice per year vs four times per year can result in
_______ due to __________?
A. Shorter lead-times, higher set-up or ordering costs
B. Higher ordering costs, lower transportation costs
C. Higher inventory carrying costs, lower marginal costs
D. Higher carrying costs, higher average inventory levels
E. Lower inventory carrying costs, lower average inventory levels - D.
Higher carrying costs, higher average inventory levels
What negative outcomes can result from large lot-sized, long lead-time
operations?
A. Customers don't want the items.
B. The items are in places and at times customers don't want them.
C. Unsold products are sold at reduced prices or scrapped altogether.
, D. All of the above - D. All of the above
Procurement, conversion, and logistics are activities that must be done to
fulfill the exchange commitment by creating form, time, and place value.
A. True
B. False - A. True
Which of the following factors typically contribute to increased delays and
variability of lead times in the global supply chain?
A. A lean fulfillment model
B. An agile fulfillment model
C. The use of cross-docking and flexible fulfillment strategies
D. Complexity required for movement of goods between countries
E. Complexity of exchanging different currencies - A. A lean fulfillment
model
Noodles & Company uses Coca-Cola Freestyle beverage machines that
allow people to select from more than 100 regular and low-calorie brands.
What kind of order fulfillment technique is Coca-Cola Freestyle beverage
machine using?
A. Hybrid lean and agile
B. EOQ
C. Lean
D. Agile - A. Hybrid lean and agile
What negative impact can result from large lot, long lead-time operations?
A. Customers are overjoyed.
B. The items are in places and at times customers don't want them.
C. The company's sales increase too much.
D. The company's profits increase too much. - B. The items are in places
and at times customers don't want them.
What key product type is marked by contribution margins of 20 to 60
percent, one- or two-day lead times, and high product variety?
A. Functional
B. Raw materials
C. Innovative
D. Luxury
E. Purses - C. Innovative
