POM EXAM PREP QUESTIONS AND 100%
VERIFIED ANSWERS!!
If a vendor has correctly used marginal analysis to select their stock levels for the day (as in
the newsperson problem), and the profit resulting from the last unit being sold (Cu) is
$0.90 and the loss resulting from that unit if it is not sold (Co) is $0.50, which of the
following is the probability of the last unit being sold?
Greater than 0.357
Greater than 0.400
Greater than 0.556
Greater than 0.678
None of these
Greater than 0.357
If a vendor has correctly used marginal analysis to select their stock levels for the day (as in
the newsperson problem), and the profit resulting from the last unit being sold (Cu) is $120
and the loss resulting from that unit if it is not sold (Co) is $360, which of the following is
the probability of the last unit being sold?
Greater than 0.90
Greater than 0.85
Greater than 0.75
Greater than 0.25
None of these
Greater than 0.75
The Pareto principle is best applied to which of the following inventory systems?
EOQ
Fixed-time period
ABC classification
,Fixed-order quantity
Single-period ordering system
ABC Classification
Which of the following are the recommended percentage groupings of the ABC
classifications of the dollar volume of products?
- A items get 15%, B items get 35%, and C items get 50%
- A items get 15%, B items get 45%, and C items get 40%
- A items get 25%, B items get 35%, and C items get 40%
- A items get 25%, B items get 15%, and C items get 60%
- A items get 20%, B items get 30%, and C items get 50%
A items get 15%, B items get 35%, and C items get 50%
Using the ABC classification system for inventory, which of the following is a true
statement?
- The "C" items are of moderate dollar volume
- You should allocate about 50% of the dollar volume to "B" items
- The "A" items are of low dollar volume
- The "A" items are of high dollar volume
- Inexpensive and low usage items are classified as "C" no matter how critical
he "A" items are of high dollar volume
Which of the following values for "z" should we use in as safety stock calculation if we
want a service probability of 98%?
1.64
1.96
2.05
2.30
None of these
, 2.05
Computer inventory systems are often programmed to produce a cycle count notice in
which of the following case?
- When the record shows a near maximum balance on hand
- When the record shows positive balance but a backorder was written
- When quality problems have been discovered with the item
- When the item has become obsolete
- When the item has been misplaced in the stockroom
When the record shows positive balance but a backorder was written
ABC inventory classification schemes divide inventory items into three groupings. What
are these groupings usually based upon?
Unit cost
Lead time
Criticality
Weight
Dollar volume
Weight
What is the basic purpose of inventory analysis?
- To provide precise inventory valuations when generating accounting records for the
firm's annual report.
- Because there are costs for making each new production setup, inventory allows
management to reduce the number of setups.
- To provide a safeguard for variation in raw material delivery time.
- To take advantage of economic purchase order size.
- To specify when items should be ordered and how large the order should be.
To specify when items should be ordered and how large the order should be.
VERIFIED ANSWERS!!
If a vendor has correctly used marginal analysis to select their stock levels for the day (as in
the newsperson problem), and the profit resulting from the last unit being sold (Cu) is
$0.90 and the loss resulting from that unit if it is not sold (Co) is $0.50, which of the
following is the probability of the last unit being sold?
Greater than 0.357
Greater than 0.400
Greater than 0.556
Greater than 0.678
None of these
Greater than 0.357
If a vendor has correctly used marginal analysis to select their stock levels for the day (as in
the newsperson problem), and the profit resulting from the last unit being sold (Cu) is $120
and the loss resulting from that unit if it is not sold (Co) is $360, which of the following is
the probability of the last unit being sold?
Greater than 0.90
Greater than 0.85
Greater than 0.75
Greater than 0.25
None of these
Greater than 0.75
The Pareto principle is best applied to which of the following inventory systems?
EOQ
Fixed-time period
ABC classification
,Fixed-order quantity
Single-period ordering system
ABC Classification
Which of the following are the recommended percentage groupings of the ABC
classifications of the dollar volume of products?
- A items get 15%, B items get 35%, and C items get 50%
- A items get 15%, B items get 45%, and C items get 40%
- A items get 25%, B items get 35%, and C items get 40%
- A items get 25%, B items get 15%, and C items get 60%
- A items get 20%, B items get 30%, and C items get 50%
A items get 15%, B items get 35%, and C items get 50%
Using the ABC classification system for inventory, which of the following is a true
statement?
- The "C" items are of moderate dollar volume
- You should allocate about 50% of the dollar volume to "B" items
- The "A" items are of low dollar volume
- The "A" items are of high dollar volume
- Inexpensive and low usage items are classified as "C" no matter how critical
he "A" items are of high dollar volume
Which of the following values for "z" should we use in as safety stock calculation if we
want a service probability of 98%?
1.64
1.96
2.05
2.30
None of these
, 2.05
Computer inventory systems are often programmed to produce a cycle count notice in
which of the following case?
- When the record shows a near maximum balance on hand
- When the record shows positive balance but a backorder was written
- When quality problems have been discovered with the item
- When the item has become obsolete
- When the item has been misplaced in the stockroom
When the record shows positive balance but a backorder was written
ABC inventory classification schemes divide inventory items into three groupings. What
are these groupings usually based upon?
Unit cost
Lead time
Criticality
Weight
Dollar volume
Weight
What is the basic purpose of inventory analysis?
- To provide precise inventory valuations when generating accounting records for the
firm's annual report.
- Because there are costs for making each new production setup, inventory allows
management to reduce the number of setups.
- To provide a safeguard for variation in raw material delivery time.
- To take advantage of economic purchase order size.
- To specify when items should be ordered and how large the order should be.
To specify when items should be ordered and how large the order should be.
