SCMN 3710 FINAL EXAM
QUESTIONS AND ANSWERS
1. The two primary costs (tradeoffs) analyzed in the EOQ model are - Answer-
Ordering/Setup (transportation) and Inventory Carrying/Holding (insurance)
The fixed interval model does not require close or constant surveillance of _______.
- Answer- Inventory
The two fundamental decisions required to manage a stock point are - Answer-
Ordering/Setup (transportation) and Inventory Carrying/Holding (insurance)
The context of a "Low Pick, High Store" environment where "Storage" dominates
would suggest equipment selection and warehouse design that favored - Answer-
random locations, high density storage and manual handling
The "general objective" of materials handling is to create a productive, efficient, and
safe operation that balances - Answer- service and cost, volume and capacity, and
safety and productivity
The context of a "High Pick, Low Storage" environment where "Picking" dominates
would suggest equipment selection and warehouse design that favors - Answer-
dedicated locations, low density storage and automated handling
As the number of picks per order picker decreases on a given tour, his/her total time
out ___ and the time per pick ___. - Answer- Decreases, Increases
If a DC that picks primarily cases switches to mostly broken cases (with the same
items), which of the following would occur in the DC? - Answer- Labor costs would
increase
The drawback of centralized inventory is: - Answer- that it extends lead times and
results in higher transportation costs.
Dependent demand relates to - Answer- demand for another inventory item or
product.
JIT is a _______ system. - Answer- pull
This type of inventory is influenced by the reliability of demand and lead time. -
Answer- WIP
The U.S. Coast Guard (USCG) is "dual-hatted" with responsibilities under both -
Answer- the Department of Defense and the Department of Transportation
, The Department of Transportation is responsible for - Answer- national
transportation policy to ensure the safety and efficiency of our national transportation
system
Federal Regulation of transportation (in the US) has been around since - Answer-
Act to Regulate Commerce in 1887.
Which e-commerce business model used in procurement and sourcing has a seller-
operated service that consists of a number of electronic catalogs from suppliers
within a market. - Answer- Electronic marketplace
Which of these is not a form of purchasing? - Answer- process improvement
Strategic sourcing as a process is far more broad and comprehensive than
procurement. Overall, the process starts with the formation of a - Answer- steering
committee.
Railroads fall into a group called - Answer- natural monopolies.
Which of these is not a freight document? - Answer- routing guide
Air carriers were historically looked upon as - Answer- emergency only carriers.
To help guide the strategic sourcing process, five core principles are recognized as
key drivers to achieve the desired levels of value, which one is not one of those core
principles - Answer- Drive continuous savings
The concept that represents the sum of all costs associated with making and
delivering products to the point where they are needed is called - Answer- total
landed cost
Which approach represents a strategy in which the entire organization is focused on
the examination of process variability and continuous improvement? - Answer- Total
Quality Management
Two of the most common adjustments to the "basic" EOQ model involve correcting
for - Answer- Price breaks (quantity discounts) and transportation (in-transit
inventory and rate breaks)
A quantity discount (price break at higher volume) tends to _______ as _______. -
Answer- Lower carrying cost; incremental quantities decrease
Which of the options is a principal shortcoming of the EOQ-based approach? -
Answer- It does not support inventory decision making at multiple locations
The first step in the Strategic Analysis Design Framework (Hassan, 2002) focuses
on - Answer- specify the type/purpose of the facility
QUESTIONS AND ANSWERS
1. The two primary costs (tradeoffs) analyzed in the EOQ model are - Answer-
Ordering/Setup (transportation) and Inventory Carrying/Holding (insurance)
The fixed interval model does not require close or constant surveillance of _______.
- Answer- Inventory
The two fundamental decisions required to manage a stock point are - Answer-
Ordering/Setup (transportation) and Inventory Carrying/Holding (insurance)
The context of a "Low Pick, High Store" environment where "Storage" dominates
would suggest equipment selection and warehouse design that favored - Answer-
random locations, high density storage and manual handling
The "general objective" of materials handling is to create a productive, efficient, and
safe operation that balances - Answer- service and cost, volume and capacity, and
safety and productivity
The context of a "High Pick, Low Storage" environment where "Picking" dominates
would suggest equipment selection and warehouse design that favors - Answer-
dedicated locations, low density storage and automated handling
As the number of picks per order picker decreases on a given tour, his/her total time
out ___ and the time per pick ___. - Answer- Decreases, Increases
If a DC that picks primarily cases switches to mostly broken cases (with the same
items), which of the following would occur in the DC? - Answer- Labor costs would
increase
The drawback of centralized inventory is: - Answer- that it extends lead times and
results in higher transportation costs.
Dependent demand relates to - Answer- demand for another inventory item or
product.
JIT is a _______ system. - Answer- pull
This type of inventory is influenced by the reliability of demand and lead time. -
Answer- WIP
The U.S. Coast Guard (USCG) is "dual-hatted" with responsibilities under both -
Answer- the Department of Defense and the Department of Transportation
, The Department of Transportation is responsible for - Answer- national
transportation policy to ensure the safety and efficiency of our national transportation
system
Federal Regulation of transportation (in the US) has been around since - Answer-
Act to Regulate Commerce in 1887.
Which e-commerce business model used in procurement and sourcing has a seller-
operated service that consists of a number of electronic catalogs from suppliers
within a market. - Answer- Electronic marketplace
Which of these is not a form of purchasing? - Answer- process improvement
Strategic sourcing as a process is far more broad and comprehensive than
procurement. Overall, the process starts with the formation of a - Answer- steering
committee.
Railroads fall into a group called - Answer- natural monopolies.
Which of these is not a freight document? - Answer- routing guide
Air carriers were historically looked upon as - Answer- emergency only carriers.
To help guide the strategic sourcing process, five core principles are recognized as
key drivers to achieve the desired levels of value, which one is not one of those core
principles - Answer- Drive continuous savings
The concept that represents the sum of all costs associated with making and
delivering products to the point where they are needed is called - Answer- total
landed cost
Which approach represents a strategy in which the entire organization is focused on
the examination of process variability and continuous improvement? - Answer- Total
Quality Management
Two of the most common adjustments to the "basic" EOQ model involve correcting
for - Answer- Price breaks (quantity discounts) and transportation (in-transit
inventory and rate breaks)
A quantity discount (price break at higher volume) tends to _______ as _______. -
Answer- Lower carrying cost; incremental quantities decrease
Which of the options is a principal shortcoming of the EOQ-based approach? -
Answer- It does not support inventory decision making at multiple locations
The first step in the Strategic Analysis Design Framework (Hassan, 2002) focuses
on - Answer- specify the type/purpose of the facility
