OM 300 Exam 3 | The University of Alabama | UPDATED Questions
with 100% Verified Answers
Question: One use of inventory is _____.
Answer:
to provide a hedge against inflation
Question: The objective of inventory management is to _____.
Answer:
strike a balance between inventory investment and customer service
Question: Which of the following types of inventory describes inventory that has been purchased but not
processed? a. finished-goods inventory b. work-in-progress inventory c. raw material inventory d.
maintenance/repair/operating supply inventory
Answer:
c. raw material inventory
Question: What is the cost to prepare a machine or process for■ production?
Answer:
setup cost
Question: The difference between the basic EOQ model and the production order quantity model is that _____.
Answer:
the production order quantity model does not require the assumption of instantaneous delivery
Question: Extra units that are held in inventory to reduce stockouts are called _____.
Answer:
safety stock
Question: A supply chain ends with _____.
Answer:
a satisfied customer
Question: Which of the following statements is NOT■ true? a. Supply chain management describes the
coordination of all supply chain■ activities, starting with raw■ materials, and ending with a satisfied customer.
b. The objective of supply chain management is to coordinate activities within the supply chain to maximize the
supply■ chain's competitive advantage and benefits to the ultimate consumer. c. A supply chain includes■
, suppliers; manufacturers■ and/or service■ providers; and■ distributors, wholesalers,■ and/or retailers who
deliver the product■ and/or service to the final customer. d. An increased sales effort may help a firm reach its
profit goals more easily than would effective cost cutting.
Answer:
d. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.
Question: A response strategy requires suppliers be selected based primarily on _____.
Answer:
capacity, speed, and flexibility
Question: What is transferring a firm's activities that have traditionally been internal to external suppliers?
Answer:
outsourcing
Question: The advantage of having a few suppliers is to _____.
Answer:
form a long-term relationship
Question: What is developing the ability to produce goods or services previously purchased or actually buying
a supplier/distributor?
Answer:
vertical integration
Question: Which of the following strategies is part collaboration, part purchasing from few suppliers, and part
vertical integration?
Answer:
keiretsu networks
Question: To reduce the risks from vertical■ integration, firms may choose to develop some form of formal
collaboration known as _____.
Answer:
a joint venture
with 100% Verified Answers
Question: One use of inventory is _____.
Answer:
to provide a hedge against inflation
Question: The objective of inventory management is to _____.
Answer:
strike a balance between inventory investment and customer service
Question: Which of the following types of inventory describes inventory that has been purchased but not
processed? a. finished-goods inventory b. work-in-progress inventory c. raw material inventory d.
maintenance/repair/operating supply inventory
Answer:
c. raw material inventory
Question: What is the cost to prepare a machine or process for■ production?
Answer:
setup cost
Question: The difference between the basic EOQ model and the production order quantity model is that _____.
Answer:
the production order quantity model does not require the assumption of instantaneous delivery
Question: Extra units that are held in inventory to reduce stockouts are called _____.
Answer:
safety stock
Question: A supply chain ends with _____.
Answer:
a satisfied customer
Question: Which of the following statements is NOT■ true? a. Supply chain management describes the
coordination of all supply chain■ activities, starting with raw■ materials, and ending with a satisfied customer.
b. The objective of supply chain management is to coordinate activities within the supply chain to maximize the
supply■ chain's competitive advantage and benefits to the ultimate consumer. c. A supply chain includes■
, suppliers; manufacturers■ and/or service■ providers; and■ distributors, wholesalers,■ and/or retailers who
deliver the product■ and/or service to the final customer. d. An increased sales effort may help a firm reach its
profit goals more easily than would effective cost cutting.
Answer:
d. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.
Question: A response strategy requires suppliers be selected based primarily on _____.
Answer:
capacity, speed, and flexibility
Question: What is transferring a firm's activities that have traditionally been internal to external suppliers?
Answer:
outsourcing
Question: The advantage of having a few suppliers is to _____.
Answer:
form a long-term relationship
Question: What is developing the ability to produce goods or services previously purchased or actually buying
a supplier/distributor?
Answer:
vertical integration
Question: Which of the following strategies is part collaboration, part purchasing from few suppliers, and part
vertical integration?
Answer:
keiretsu networks
Question: To reduce the risks from vertical■ integration, firms may choose to develop some form of formal
collaboration known as _____.
Answer:
a joint venture
