NCSU BUS 370 Test 3 Questions with
Solved Solutions Rated A+ 2025-2026
Edition.
Inventory - Answer Any idle resource held for future use - "Those stocks or items used to
support production (raw material and work-in-process items), supporting activities
(maintenance supplies) and customer service (finished goods, spare parts)
Forms of Inventory - Answer Raw Materials - ex: oranges
Work In Process
Finished Goods - ex: filled and sealed cans
Components - ex: empty cans
Inventory Types (CHATSS) - Answer Cycle Stock
Hedge Inventory
Anticipation Inventory
Transportation Inventory
Safety Stock
Smoothing Inventories
Cycle Stock Inventories - Answer Components or products that are received in bulk by a
downstream partner, gradually used up and then replenished again in bulk by the upstream
partner
Example - Samsung - 50" Class (49.5" Diag.) - LED - 1080p - Smart - HDTV - Black
Safety Stock Inventories - Answer Extra Inventory that a company holds to protect itself
against uncertainty in demand or replenishment time
Anticipation Inventories - Answer Held in anticipation of customer demand
Hedging Inventories - Answer Buffer against a potential event (strike, price increase)
, Safety Stock, Hedge Inventory - Answer uncertainty in supply or demand, which type of
inventory should you use?
Cycle Stock - Answer mismatch between a downstream partner's demand and the most
efficient production or shipment values for an upstream partner, which type of inventory should
you use?
Smoothing Inventory - Answer mismatch between downstream demand levels and upstream
production capacity, which type of inventory should you use?
Anticipation Inventory, Transportation Inventory - Answer mismatch between timing of
customer demand and supply chain lead times, which type of inventory should you use?
Independent Demand Items - Answer Inventory items whose demand levels are beyond a
company's complete control
ex: tables
- demand from outside the organization
- unpredictable -> usually forecasted
Dependent Demand Items - Answer Inventory items whose demand levels are tied directly to
a company's demand production of another item
ex: table legs
- tied to the production of another item
- relevant mostly to manufacturers
Independent Inventory Demand Systems - Answer Periodic Review
- - Restocking levels
Continuous Review
- - Economic Order Quantity (Total Cost - holding plus ordering costs)
- - Reorder Points
- - Safety Stock
Single Period Inventory Systems (Target Stocking Point)
Solved Solutions Rated A+ 2025-2026
Edition.
Inventory - Answer Any idle resource held for future use - "Those stocks or items used to
support production (raw material and work-in-process items), supporting activities
(maintenance supplies) and customer service (finished goods, spare parts)
Forms of Inventory - Answer Raw Materials - ex: oranges
Work In Process
Finished Goods - ex: filled and sealed cans
Components - ex: empty cans
Inventory Types (CHATSS) - Answer Cycle Stock
Hedge Inventory
Anticipation Inventory
Transportation Inventory
Safety Stock
Smoothing Inventories
Cycle Stock Inventories - Answer Components or products that are received in bulk by a
downstream partner, gradually used up and then replenished again in bulk by the upstream
partner
Example - Samsung - 50" Class (49.5" Diag.) - LED - 1080p - Smart - HDTV - Black
Safety Stock Inventories - Answer Extra Inventory that a company holds to protect itself
against uncertainty in demand or replenishment time
Anticipation Inventories - Answer Held in anticipation of customer demand
Hedging Inventories - Answer Buffer against a potential event (strike, price increase)
, Safety Stock, Hedge Inventory - Answer uncertainty in supply or demand, which type of
inventory should you use?
Cycle Stock - Answer mismatch between a downstream partner's demand and the most
efficient production or shipment values for an upstream partner, which type of inventory should
you use?
Smoothing Inventory - Answer mismatch between downstream demand levels and upstream
production capacity, which type of inventory should you use?
Anticipation Inventory, Transportation Inventory - Answer mismatch between timing of
customer demand and supply chain lead times, which type of inventory should you use?
Independent Demand Items - Answer Inventory items whose demand levels are beyond a
company's complete control
ex: tables
- demand from outside the organization
- unpredictable -> usually forecasted
Dependent Demand Items - Answer Inventory items whose demand levels are tied directly to
a company's demand production of another item
ex: table legs
- tied to the production of another item
- relevant mostly to manufacturers
Independent Inventory Demand Systems - Answer Periodic Review
- - Restocking levels
Continuous Review
- - Economic Order Quantity (Total Cost - holding plus ordering costs)
- - Reorder Points
- - Safety Stock
Single Period Inventory Systems (Target Stocking Point)
