1|Page
MGMT 339 EXAM 3 |2025-2026 LATEST UPDATED | ACTUAL EXAM
QUESTIONS WITH SOLUTIONS | 100% RATED CORRECT | 100%
VERFIED SOLTIONS | ALREADY GRADED A+
1. What is a stock of materials used to satisfy customer demand or support
production?: inventory
2. Three accounting types of inventory are?: raw materials, work in
progress, finished goods
3. Four types of inventory are?: cycle, safety, anticipation, pipeline
4. What inventory varies with lot size and covers expected demand?: cycle
5. What is a surplus inventory used to protect against uncertainty in
demand and lead time?: safety stock
6. What inventory is used to prepare for predictable increases in demand
or shortages in supply?: anticipation
7. What inventory consists of items that have been ordered but not yet
received?: pipeline 8. Types of Inventory:
1. Cycle ________ with _______ ____ and _____ demand
,2|Page
2. Safety stock is used to protect against _______ in demand and ___ ___ 3.
Anticipation is used to prepare for ______ increases in demand or _____ in
supply
4. Pipeline consists of items that have been _____ but not _____.: varies, lot
size, expected, uncertainty, lot size, predictable, shortages, ordered, received 9.
Large vs Small Inventory:
Minimize stockouts and lost sales?: large 10. Large vs Small Inventory:
Improve customer service?: large 11. Large vs Small Inventory:
Reduce ordering cost: large
12. Lower transportation costs: large
13. Large vs Small Inventory:
Get volume discounts: large 14. Large vs Small Inventory:
Reduce setup cost: large 15. Large vs Small Inventory:
Improve utilization of labor and equipment: large
16. Large vs Small Inventory:
Reduce the cost of capital: small 17. Large vs Small Inventory:
Reduce storage and handling costs: small 18. Large vs Small Inventory:
,3|Page
reduce insurance: small 19. Large vs Small Inventory:
Reduce tax: small
20. Large vs Small Inventory:
reduce shrinkage: small 21. EOQ Model:
The EOQ model determines the _____ ___ that _____ the sum of ____ and
_____ cost.: order quantity, minimizes, holding, ordering 22. EOQ Model: Five
Assumptions:
1. Demand rate is ___ and ____ with _____
2. No _____ on the ___ of the order
3. The only two relevant costs are inventory _____ costs and the _____
_____ cost (_______ cost ignored).
4. Decision for one item can be made _____ of other items
5. The ____ time is ___ and ____ with _____.: constant, known, certainty,
constraint, size, holding, fixed ordering, purchase, independent, lead, constant,
known, certainty
23. EOQ Model:
Many orders produce a ____ average inventory while large orders produce a
, 4|Page
_____ average inventory.: low, high
24. What is the inventory level at which you should place a new
order?: reorder point
25. The continuous review system tracks inventory in ____ ___ and
reorders when _______ ____ is reached.: real time, reorder point
26. Does a fixed, positive lead time affect EOQ?
______, EOQ is ____ if lead time is constant.: no, unchanged
27. The portion of total inventory that varies directly with lot size is
what?: cycle stock
28. Safety stock is stock that is held ____ ____ of ____ demand due to
____ demand and/or lead time: in excess, expected, variable
29. When lead time and/or demand fluctuates, demand during lead
time also_______.: fluctuate
30. Standard deviation of demand during lead time represents the
______ of such _____.
In the presence of such uncertainty, we need to hold some ____ ____.:
magnitude, variability, safety stock
MGMT 339 EXAM 3 |2025-2026 LATEST UPDATED | ACTUAL EXAM
QUESTIONS WITH SOLUTIONS | 100% RATED CORRECT | 100%
VERFIED SOLTIONS | ALREADY GRADED A+
1. What is a stock of materials used to satisfy customer demand or support
production?: inventory
2. Three accounting types of inventory are?: raw materials, work in
progress, finished goods
3. Four types of inventory are?: cycle, safety, anticipation, pipeline
4. What inventory varies with lot size and covers expected demand?: cycle
5. What is a surplus inventory used to protect against uncertainty in
demand and lead time?: safety stock
6. What inventory is used to prepare for predictable increases in demand
or shortages in supply?: anticipation
7. What inventory consists of items that have been ordered but not yet
received?: pipeline 8. Types of Inventory:
1. Cycle ________ with _______ ____ and _____ demand
,2|Page
2. Safety stock is used to protect against _______ in demand and ___ ___ 3.
Anticipation is used to prepare for ______ increases in demand or _____ in
supply
4. Pipeline consists of items that have been _____ but not _____.: varies, lot
size, expected, uncertainty, lot size, predictable, shortages, ordered, received 9.
Large vs Small Inventory:
Minimize stockouts and lost sales?: large 10. Large vs Small Inventory:
Improve customer service?: large 11. Large vs Small Inventory:
Reduce ordering cost: large
12. Lower transportation costs: large
13. Large vs Small Inventory:
Get volume discounts: large 14. Large vs Small Inventory:
Reduce setup cost: large 15. Large vs Small Inventory:
Improve utilization of labor and equipment: large
16. Large vs Small Inventory:
Reduce the cost of capital: small 17. Large vs Small Inventory:
Reduce storage and handling costs: small 18. Large vs Small Inventory:
,3|Page
reduce insurance: small 19. Large vs Small Inventory:
Reduce tax: small
20. Large vs Small Inventory:
reduce shrinkage: small 21. EOQ Model:
The EOQ model determines the _____ ___ that _____ the sum of ____ and
_____ cost.: order quantity, minimizes, holding, ordering 22. EOQ Model: Five
Assumptions:
1. Demand rate is ___ and ____ with _____
2. No _____ on the ___ of the order
3. The only two relevant costs are inventory _____ costs and the _____
_____ cost (_______ cost ignored).
4. Decision for one item can be made _____ of other items
5. The ____ time is ___ and ____ with _____.: constant, known, certainty,
constraint, size, holding, fixed ordering, purchase, independent, lead, constant,
known, certainty
23. EOQ Model:
Many orders produce a ____ average inventory while large orders produce a
, 4|Page
_____ average inventory.: low, high
24. What is the inventory level at which you should place a new
order?: reorder point
25. The continuous review system tracks inventory in ____ ___ and
reorders when _______ ____ is reached.: real time, reorder point
26. Does a fixed, positive lead time affect EOQ?
______, EOQ is ____ if lead time is constant.: no, unchanged
27. The portion of total inventory that varies directly with lot size is
what?: cycle stock
28. Safety stock is stock that is held ____ ____ of ____ demand due to
____ demand and/or lead time: in excess, expected, variable
29. When lead time and/or demand fluctuates, demand during lead
time also_______.: fluctuate
30. Standard deviation of demand during lead time represents the
______ of such _____.
In the presence of such uncertainty, we need to hold some ____ ____.:
magnitude, variability, safety stock
