MQM 227 Final Exam ISU BS Questions With Complete
Solutions
Regarding the bullwhip effect, which of the following
statements is incorrect?
A. Suppliers may have to forecast demand (as compared to
being shown end user market demand).
B. There is variability in the orders received by each entity from
period to period.
C. If products cannot be produced until purchased parts are
received, a company may be forced to hold extra inventory (if
more orders) or halt supplier parts until existing inventory goes
down (if less orders).
D. When the forecast does not match demand, organizations
have either too much or too little inventory.
E. As one moves farther and farther back from the end user, the
lesser the variability in the orders. Correct Answers E. As one
moves farther and farther back from the end user, the lesser the
variability in the orders.
Which of the following items is not an element of an MRP
system?
A. Bill of Materials
B. Shop-Floor Control
C. Capacity Planning
D. Purchasing
E. Master Scheduling
F. Inventory Planning Correct Answers F. Inventory Planning
,Which of the following items pertaining to common types of
supply chain metrics is incorrect?
A. Cost
B. Serviceability
C. Flexibility
D. Quality Correct Answers B. Serviceability
Which of the following statements is incorrect?
A. A common delivery metric is the percent of orders delivered
complete and on the date requested by the customer.
B. A common delivery metric is the percent of orders filled
completely from inventory.
C. A common delivery metric is the time it takes from taking an
order to its delivery to customer.
D. A common delivery metric is the performance of the product
or service based on customer perceptions. Correct Answers D.
A common delivery metric is the performance of the product or
service based on customer perceptions.
Which of the following statements is incorrect?
A. A key logistics decision would be the type of packaging and
material handling.
B. Purchasing "inputs" range from intangible products to
services.
C. The Purchasing function buys goods and services from other
organizations.
, D. A key logistics decision would be the location and
management of storage points. Correct Answers B. Purchasing
"inputs" range from intangible products to services.
Which of the following statements is incorrect?
A. A Management Requirements System represents a push
system while a JIT system represents a pull system.
B. Materials in a JIT system are pulled through production by
subsequent (using) work centers only when these work centers
need the parts.
C. In an MRP system, a master schedule is created that
represents future forecasts/orders and that determines which
components and parts are to be ordered and pushed through
production.
D. The master schedule specifies the end items (or output) to be
produced in an MRP system. Correct Answers A. A
Management Requirements System represents a push system
while a JIT system represents a pull system.
Which of the following statements is incorrect?
A. A primary reason for carrying inventory is to provide for
transit from the one location to the next.
B. Safety stocks of finished goods are maintained to absorb
changes in demand so that production can maintain a separate,
more even pace.
C. Safety capacity is inventory that is maintained to protect
against these uncertainties.
D. Safety stocks of raw materials are maintained to absorb
uncertainties in acquiring purchased materials from suppliers in
Solutions
Regarding the bullwhip effect, which of the following
statements is incorrect?
A. Suppliers may have to forecast demand (as compared to
being shown end user market demand).
B. There is variability in the orders received by each entity from
period to period.
C. If products cannot be produced until purchased parts are
received, a company may be forced to hold extra inventory (if
more orders) or halt supplier parts until existing inventory goes
down (if less orders).
D. When the forecast does not match demand, organizations
have either too much or too little inventory.
E. As one moves farther and farther back from the end user, the
lesser the variability in the orders. Correct Answers E. As one
moves farther and farther back from the end user, the lesser the
variability in the orders.
Which of the following items is not an element of an MRP
system?
A. Bill of Materials
B. Shop-Floor Control
C. Capacity Planning
D. Purchasing
E. Master Scheduling
F. Inventory Planning Correct Answers F. Inventory Planning
,Which of the following items pertaining to common types of
supply chain metrics is incorrect?
A. Cost
B. Serviceability
C. Flexibility
D. Quality Correct Answers B. Serviceability
Which of the following statements is incorrect?
A. A common delivery metric is the percent of orders delivered
complete and on the date requested by the customer.
B. A common delivery metric is the percent of orders filled
completely from inventory.
C. A common delivery metric is the time it takes from taking an
order to its delivery to customer.
D. A common delivery metric is the performance of the product
or service based on customer perceptions. Correct Answers D.
A common delivery metric is the performance of the product or
service based on customer perceptions.
Which of the following statements is incorrect?
A. A key logistics decision would be the type of packaging and
material handling.
B. Purchasing "inputs" range from intangible products to
services.
C. The Purchasing function buys goods and services from other
organizations.
, D. A key logistics decision would be the location and
management of storage points. Correct Answers B. Purchasing
"inputs" range from intangible products to services.
Which of the following statements is incorrect?
A. A Management Requirements System represents a push
system while a JIT system represents a pull system.
B. Materials in a JIT system are pulled through production by
subsequent (using) work centers only when these work centers
need the parts.
C. In an MRP system, a master schedule is created that
represents future forecasts/orders and that determines which
components and parts are to be ordered and pushed through
production.
D. The master schedule specifies the end items (or output) to be
produced in an MRP system. Correct Answers A. A
Management Requirements System represents a push system
while a JIT system represents a pull system.
Which of the following statements is incorrect?
A. A primary reason for carrying inventory is to provide for
transit from the one location to the next.
B. Safety stocks of finished goods are maintained to absorb
changes in demand so that production can maintain a separate,
more even pace.
C. Safety capacity is inventory that is maintained to protect
against these uncertainties.
D. Safety stocks of raw materials are maintained to absorb
uncertainties in acquiring purchased materials from suppliers in
