ISOM 351 UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
COMPREHENSIVE STUDY GUIDE
●● Work in Progress (WIP)
Answer: Items that are mid-production — not yet finished goods
●● Finished Goods
Answer: Completed products ready to be sold to customers
●● MRO Inventory
Answer: Maintenance, Repair, and Operating supplies that keep the
business running but are not part of the product
●● ABC Analysis
Answer: Classifying inventory by annual dollar volume: A = high value
(most attention), B = medium, C = low value (least attention)
●● Holding Cost (H)
Answer: The cost of storing/carrying inventory over time (e.g.
warehouse rent, spoilage)
AND CORRECT ANSWERS
COMPREHENSIVE STUDY GUIDE
●● Work in Progress (WIP)
Answer: Items that are mid-production — not yet finished goods
●● Finished Goods
Answer: Completed products ready to be sold to customers
●● MRO Inventory
Answer: Maintenance, Repair, and Operating supplies that keep the
business running but are not part of the product
●● ABC Analysis
Answer: Classifying inventory by annual dollar volume: A = high value
(most attention), B = medium, C = low value (least attention)
●● Holding Cost (H)
Answer: The cost of storing/carrying inventory over time (e.g.
warehouse rent, spoilage)
