SCM Final UPDATED ACTUAL Questions and CORRECT Answers

SCM Final UPDATED ACTUAL Questions and CORRECT Answers

A major challenge in inventory management is to maintain
a balance between inventory investment and customer
service.
True
True
False
Adding capacity at a bottleneck could significantly reduce
the total cycle time of a product.
True
True
False
In cycle counting, the frequency of item counting and
stock verification usually varies from item to item depend-
ing upon the item's classification.
True
True
False
Adding capacity to a workstation after a bottleneck will
likely reduce the total cycle time of a product.
True
True
False
Insurance and taxes on inventory are part of the costs
known as setup ordering costs.
False
True
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. e) All of these are true.
d) The reorder point is that quantity that triggers an action
to restock an item.
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

True
False
Which of the following statements about the basic EOQ
model is true?

a) If annual demand were to double, the number of or-
ders per year would increase.
b) If annual demand were to double, the EOQ would
e) All of these statements are true.
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.
The reorder point is the inventory level at which action is
taken to replenish the stocked item.
True
True
False