SCMT 2103 M3 CYU EXAM
QUESTIONS AND ANSWERS
Profit divided by assets is - Correct Answers -ROA
The direct effect of an increase in inventory is reduction in __________. - Correct
Answers -ROA
Fill rate is the % of demand fulfilled from ________. - Correct Answers -on hand
inventory
An increase in transportation costs can have a secondary effect on ROA that actually
increases ROA. This can happen if the additional spending on transportation
___________. - Correct Answers -both of these (results in a shorter lead time that
increases profit by enough to offset the increase in transportation costs, results in a
shorter lead time that decreases inventory costs by enough to offset the reduction in
profit as a result of more expensive transportation).
One of the effects of adding distribution centers is reducing store lead time and
inventory. If store inventory is reduced, the ROA will _______. - Correct Answers -
increase
GMROI _________________________ - Correct Answers -all of these (is the Gross
Margin Return on Inventory Investment, measures the performance of inventory,
includes gross margin in the calculation)
ROA is profit divided by _____. - Correct Answers -Assets
Inventory is a component of __________ on the balance sheet. - Correct Answers –
Assets
Consider the following analysis for four SKUs in a product category. Which is the best
estimate of the turns of the category as a whole?
SKU AS AI IT
1 1700 115 14.78
2 17800 9500 1.87
3 17800 9500 1.87
4 17800 9500 1.87
, Total 55100 28615 ? - Correct Answers -1.93
Consider the following analysis for four SKUs in a product category. Which is the best
estimate of the turns of the category as a whole?
SKU AS AI IT
1 800 25 32.00
2 21400 18500 1.16
3 21400 18500 1.16
4 21400 18500 1.16
Total 65000 55525 ? - Correct Answers -1.17
Consider the following analysis for four SKUs in a product category. Which is the best
estimate of the turns of the category as a whole?
SKU AS AI IT
1 1200 45 26.67
2 20600 16500 1.25
3 20600 16500 1.25
4 20600 16500 1.25
Total 63000 49545 ? - Correct Answers -1.27
Fill rate is the % of __________ from ________. - Correct Answers -demand fulfilled; on
hand inventory
The secondary effect of an increase in inventory may be an increase in ROA if the
increase in inventory causes an increase in sales and profit. The increase in the sales
and profit could be a result of which of the following? - Correct Answers -All of these
(Fewer stockouts, Fewer lost sales, Increase in sales of impulse items with inventory
dependent demand)
ROA will increase if we generate ________ profit with _____ assets. - Correct Answers
-more; fewer
By spending less on transportation, one will most likely
I: Increase the lead time
II: Decrease the lead time
III: Increase the variability of lead time
IV: Decrease the variability of lead time. - Correct Answers -I & III
The direct effect of a (an) __________ in the number of distribution centers is to
increase assets which ___________ ROA. - Correct Answers -increases; reduces
When the inventory level increases, the fill rate __________ - Correct Answers -
increases
QUESTIONS AND ANSWERS
Profit divided by assets is - Correct Answers -ROA
The direct effect of an increase in inventory is reduction in __________. - Correct
Answers -ROA
Fill rate is the % of demand fulfilled from ________. - Correct Answers -on hand
inventory
An increase in transportation costs can have a secondary effect on ROA that actually
increases ROA. This can happen if the additional spending on transportation
___________. - Correct Answers -both of these (results in a shorter lead time that
increases profit by enough to offset the increase in transportation costs, results in a
shorter lead time that decreases inventory costs by enough to offset the reduction in
profit as a result of more expensive transportation).
One of the effects of adding distribution centers is reducing store lead time and
inventory. If store inventory is reduced, the ROA will _______. - Correct Answers -
increase
GMROI _________________________ - Correct Answers -all of these (is the Gross
Margin Return on Inventory Investment, measures the performance of inventory,
includes gross margin in the calculation)
ROA is profit divided by _____. - Correct Answers -Assets
Inventory is a component of __________ on the balance sheet. - Correct Answers –
Assets
Consider the following analysis for four SKUs in a product category. Which is the best
estimate of the turns of the category as a whole?
SKU AS AI IT
1 1700 115 14.78
2 17800 9500 1.87
3 17800 9500 1.87
4 17800 9500 1.87
, Total 55100 28615 ? - Correct Answers -1.93
Consider the following analysis for four SKUs in a product category. Which is the best
estimate of the turns of the category as a whole?
SKU AS AI IT
1 800 25 32.00
2 21400 18500 1.16
3 21400 18500 1.16
4 21400 18500 1.16
Total 65000 55525 ? - Correct Answers -1.17
Consider the following analysis for four SKUs in a product category. Which is the best
estimate of the turns of the category as a whole?
SKU AS AI IT
1 1200 45 26.67
2 20600 16500 1.25
3 20600 16500 1.25
4 20600 16500 1.25
Total 63000 49545 ? - Correct Answers -1.27
Fill rate is the % of __________ from ________. - Correct Answers -demand fulfilled; on
hand inventory
The secondary effect of an increase in inventory may be an increase in ROA if the
increase in inventory causes an increase in sales and profit. The increase in the sales
and profit could be a result of which of the following? - Correct Answers -All of these
(Fewer stockouts, Fewer lost sales, Increase in sales of impulse items with inventory
dependent demand)
ROA will increase if we generate ________ profit with _____ assets. - Correct Answers
-more; fewer
By spending less on transportation, one will most likely
I: Increase the lead time
II: Decrease the lead time
III: Increase the variability of lead time
IV: Decrease the variability of lead time. - Correct Answers -I & III
The direct effect of a (an) __________ in the number of distribution centers is to
increase assets which ___________ ROA. - Correct Answers -increases; reduces
When the inventory level increases, the fill rate __________ - Correct Answers -
increases
