SCM - FINAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BRAND
NEW!!
A major challenge in inventory management is to maintain a balance between
inventory investment and customer service.
True
False - True
Adding capacity at a bottleneck could significantly reduce the total cycle time of a
product.
True
False - True
In cycle counting, the frequency of item counting and stock verification usually
varies from item to item depending upon the item's classification.
True
False - True
Adding capacity to a workstation after a bottleneck will likely reduce the total
cycle time of a product.
,True
False - True
Insurance and taxes on inventory are part of the costs known as setup ordering
costs.
True
False - False
Which of the following statements regarding the reorder point is true?
a) The fixed-period model has no reorder point.
b) There is a reorder point even if lead time and demand during lead time are
constant.
c) The reorder point is larger than d x L if safety stock is present.
d) The reorder point is that quantity that triggers an action to restock an item.
e) All of these are true. - e) All of these are true.
the fixed-period inventory model can have a stock-out during the review period as
well as during the reorder period, which is why fixed-period models require more
safety stock than fixed-quantity models.
True
False - True
, Which of the following statements about the basic EOQ model is true?
a) If annual demand were to double, the number of orders per year would
increase.
b) If annual demand were to double, the EOQ would increase.
c) If the carrying cost were to increase, the EOQ would fall.
d) If the ordering cost were to double, the EOQ would rise.
e) All of these statements are true. - e) All of these statements are true.
The reorder point is the inventory level at which action is taken to replenish the
stocked item.
True
False - True
In the EOQ model, if annual demand were to increase, the EOQ would increase
linearly with the increase.
True
False - False
Which of the following terms best describes the impact of sustainability initiatives
on the business model?
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BRAND
NEW!!
A major challenge in inventory management is to maintain a balance between
inventory investment and customer service.
True
False - True
Adding capacity at a bottleneck could significantly reduce the total cycle time of a
product.
True
False - True
In cycle counting, the frequency of item counting and stock verification usually
varies from item to item depending upon the item's classification.
True
False - True
Adding capacity to a workstation after a bottleneck will likely reduce the total
cycle time of a product.
,True
False - True
Insurance and taxes on inventory are part of the costs known as setup ordering
costs.
True
False - False
Which of the following statements regarding the reorder point is true?
a) The fixed-period model has no reorder point.
b) There is a reorder point even if lead time and demand during lead time are
constant.
c) The reorder point is larger than d x L if safety stock is present.
d) The reorder point is that quantity that triggers an action to restock an item.
e) All of these are true. - e) All of these are true.
the fixed-period inventory model can have a stock-out during the review period as
well as during the reorder period, which is why fixed-period models require more
safety stock than fixed-quantity models.
True
False - True
, Which of the following statements about the basic EOQ model is true?
a) If annual demand were to double, the number of orders per year would
increase.
b) If annual demand were to double, the EOQ would increase.
c) If the carrying cost were to increase, the EOQ would fall.
d) If the ordering cost were to double, the EOQ would rise.
e) All of these statements are true. - e) All of these statements are true.
The reorder point is the inventory level at which action is taken to replenish the
stocked item.
True
False - True
In the EOQ model, if annual demand were to increase, the EOQ would increase
linearly with the increase.
True
False - False
Which of the following terms best describes the impact of sustainability initiatives
on the business model?
