SCM 11 UPDATED ACTUAL Questions and CORRECT Answers
1. "Any idle resource held for future use—those stocks
or items used to support production (raw materials), sup-
porting activities (drill bits) and customer service (finished
goods, spare parts)" is the definition of
Inventory
A. Sales and operations planning.
B. Master production schedule
C. Just in time (JIT).
D. Inventory.
2. The type of demand which comes from outside the
organization, is unpredictable, and usually forecasted is
A. Periodic
Independent
B. Continuous
C. Dependent
D. Independent
3. The type of demand which is tied to the production of
another item (table legs are an example) is
A. Periodic
Dependent
B. Dependent
C. Continuous
D. Independent
4. A company which produces electricity, like Progress En-
ergy, is considering buying extra coal to hold in inventory.
They want to buffer against a potential strike at a major
coal producer which would likely result in a significant
price increase. This type of inventory is Hedging
A. Safety stock
B. Cycle stock
C. Anticipation
D. Hedging
, 5. Scholastic, the book publisher, has their suppliers,
book printers, manufacture millions of Harry Potter books
ahead of time so customers can have instant availability
on the launch date. This type of inventory is
Anticipation
A. Hedge
B. Cycle stock
C. Anticipation
D. Safety
6. A company which sources raw materials and compo-
nents from overseas will hold extra inventory of these
items due to a mismatch between the timing of customer
demand and supply chain lead times. This type of inven-
tory is Transportation
A. Hedging
B. Transportation
C. Cycle stock
D. Smoothing
7. A computer manufacturer receives 20,000 computer
mice in bulk from an upstream supplier, gradually uses
them up over time, and then receives another bulk ship-
ment of 20,000 computer mice. This type of inventory is
Cycle Stock
A. Transportation
B. Smoothing
C. Hedging
D. Cycle stock
1. The owner of a vending machine company has weekly
stops to check the soda machine at NC State. She checks
the inventory levels and fills the machine back up to its full
Periodic Review System
restocking level. She is using which of the following types
of independent demand inventory systems?
A. Continuous review system
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1. "Any idle resource held for future use—those stocks
or items used to support production (raw materials), sup-
porting activities (drill bits) and customer service (finished
goods, spare parts)" is the definition of
Inventory
A. Sales and operations planning.
B. Master production schedule
C. Just in time (JIT).
D. Inventory.
2. The type of demand which comes from outside the
organization, is unpredictable, and usually forecasted is
A. Periodic
Independent
B. Continuous
C. Dependent
D. Independent
3. The type of demand which is tied to the production of
another item (table legs are an example) is
A. Periodic
Dependent
B. Dependent
C. Continuous
D. Independent
4. A company which produces electricity, like Progress En-
ergy, is considering buying extra coal to hold in inventory.
They want to buffer against a potential strike at a major
coal producer which would likely result in a significant
price increase. This type of inventory is Hedging
A. Safety stock
B. Cycle stock
C. Anticipation
D. Hedging
, 5. Scholastic, the book publisher, has their suppliers,
book printers, manufacture millions of Harry Potter books
ahead of time so customers can have instant availability
on the launch date. This type of inventory is
Anticipation
A. Hedge
B. Cycle stock
C. Anticipation
D. Safety
6. A company which sources raw materials and compo-
nents from overseas will hold extra inventory of these
items due to a mismatch between the timing of customer
demand and supply chain lead times. This type of inven-
tory is Transportation
A. Hedging
B. Transportation
C. Cycle stock
D. Smoothing
7. A computer manufacturer receives 20,000 computer
mice in bulk from an upstream supplier, gradually uses
them up over time, and then receives another bulk ship-
ment of 20,000 computer mice. This type of inventory is
Cycle Stock
A. Transportation
B. Smoothing
C. Hedging
D. Cycle stock
1. The owner of a vending machine company has weekly
stops to check the soda machine at NC State. She checks
the inventory levels and fills the machine back up to its full
Periodic Review System
restocking level. She is using which of the following types
of independent demand inventory systems?
A. Continuous review system
2/9
