PRACTICE EXAM CONCEPTS LSU ISDS 3115
KELLE FINAL STUDY GUIDE
The transfer of some of what are traditional internal activities and resources of a
firm to outside vendors is: - ANSWER outsourcing
True/False Savings in the supply chain exert more leverage as the firm's net
profit margin decreases. - ANSWER True
True/False:
The supply chain management opportunity called postponement involves
delaying deliveries to avoid accumulation of inventory at the customer's site. -
ANSWER False
Local optimization is a supply-chain complication best described as: - ANSWER
optimizing one's local area without full knowledge of supply chain needs.
What term is used to describe the outsourcing of logistics? - ANSWER third-
party logistics (3PL)
Which of the following would NOT generally be a motive for a firm to hold
inventories?
A.
to hedge against inflation
B.
to take advantage of quantity discounts
C.
to minimize holding costs
D.
to decouple various parts of the production process
E.
to provide a selection of goods for anticipated customer demand and to
separate the firm from fluctuations in that demand - ANSWER C. to minimize
holding costs
Which of these statements about the production order quantity model is FALSE?
A.
The production order quantity model is appropriate when the assumptions of the
basic EOQ model are met, except that receipt is noninstantaneous.
B.
, Because receipt is noninstantaneous, some units are used immediately and not
stored in inventory.
C.
Average inventory is more than one-half of the production order quantity.
D.
All else equal, the smaller the ratio of demand rate to production rate, the
smaller is the production order quantity.
E.
None of the above is false. - ANSWER C. Average inventory is more than one-half
of the production order quantity.
The proper quantity of safety stock is typically determined by: - ANSWER setting
the level of safety stock so that a given stockout risk is not exceeded.
An advantage of the fixed-period inventory system is that: - ANSWER there is no
physical count of inventory items when an item is withdrawn.
In MRP, the number of units projected to be available at the beginning of each
time period refers to: - ANSWER projected on hand
Which of the following lot-sizing techniques results in the lowest holding costs? -
ANSWER lot-for-lot
Enterprise resource planning (ERP):
A.
does not integrate well with functional areas other than operations.
B.
seldom requires software upgrade or enhancement.
C.
is inexpensive to implement.
D.
automates and integrates the majority of business processes.
E.
all of the above - ANSWER D. automates and integrates the majority of business
processes
Which of the following statements regarding a pull system is TRUE?
A.
Problems become more obvious.
B.
Work is pulled to the downstream stations before it is actually needed.
C.
Manufacturing cycle time is increased.
D.
KELLE FINAL STUDY GUIDE
The transfer of some of what are traditional internal activities and resources of a
firm to outside vendors is: - ANSWER outsourcing
True/False Savings in the supply chain exert more leverage as the firm's net
profit margin decreases. - ANSWER True
True/False:
The supply chain management opportunity called postponement involves
delaying deliveries to avoid accumulation of inventory at the customer's site. -
ANSWER False
Local optimization is a supply-chain complication best described as: - ANSWER
optimizing one's local area without full knowledge of supply chain needs.
What term is used to describe the outsourcing of logistics? - ANSWER third-
party logistics (3PL)
Which of the following would NOT generally be a motive for a firm to hold
inventories?
A.
to hedge against inflation
B.
to take advantage of quantity discounts
C.
to minimize holding costs
D.
to decouple various parts of the production process
E.
to provide a selection of goods for anticipated customer demand and to
separate the firm from fluctuations in that demand - ANSWER C. to minimize
holding costs
Which of these statements about the production order quantity model is FALSE?
A.
The production order quantity model is appropriate when the assumptions of the
basic EOQ model are met, except that receipt is noninstantaneous.
B.
, Because receipt is noninstantaneous, some units are used immediately and not
stored in inventory.
C.
Average inventory is more than one-half of the production order quantity.
D.
All else equal, the smaller the ratio of demand rate to production rate, the
smaller is the production order quantity.
E.
None of the above is false. - ANSWER C. Average inventory is more than one-half
of the production order quantity.
The proper quantity of safety stock is typically determined by: - ANSWER setting
the level of safety stock so that a given stockout risk is not exceeded.
An advantage of the fixed-period inventory system is that: - ANSWER there is no
physical count of inventory items when an item is withdrawn.
In MRP, the number of units projected to be available at the beginning of each
time period refers to: - ANSWER projected on hand
Which of the following lot-sizing techniques results in the lowest holding costs? -
ANSWER lot-for-lot
Enterprise resource planning (ERP):
A.
does not integrate well with functional areas other than operations.
B.
seldom requires software upgrade or enhancement.
C.
is inexpensive to implement.
D.
automates and integrates the majority of business processes.
E.
all of the above - ANSWER D. automates and integrates the majority of business
processes
Which of the following statements regarding a pull system is TRUE?
A.
Problems become more obvious.
B.
Work is pulled to the downstream stations before it is actually needed.
C.
Manufacturing cycle time is increased.
D.
