MGT 3900 Final Exam questions well
answered to pass
The three forms of inventory are: - correct answer ✔✔raw material, WIP, and finished goods
Managing and controlling inventory means answering these questions:
1) ______ _____ to order? (______)
2) When to order? (timing)
3) What _______ to order? (______)
4) Where to order? (location) - correct answer ✔✔how much, quantity; type, product
Organizational capabilities to facilitate inventory/material management:
1) ________
2) Product demand and tracking (_______ _______)
3) Analytical skills
4) Product ________ and handling assets (_______ ____ ________) - correct answer ✔✔Forecasting,
RFID tags, transportation, modes of transportation
Inventory holding costs can be expressed in the form of:
1) ________ cost of product
2) _______ cost per unit - correct answer ✔✔percentage, holding
_______ is the number of flow units within the process. - correct answer ✔✔Inventory
,________ ______ is the practice of regulating the quantity, location, and type of inventory in a process. -
correct answer ✔✔Inventory Management
The goal of inventory management is to have the right product at the _____ _______ at the right time so
that the firm can _______ _______. - correct answer ✔✔right place, maximize profits
(T/F) Success or failure at inventory management has a significant influence on overall profitability. -
correct answer ✔✔True
1) ________ _______ Inventory: Inventory that is used as the inputs to a process and has not undergone
any transformation in the process.
2) _________ Inventory: The material and components used within the process to complete a product.
3) ________ _______ Inventory: Flow units that have completed processing. - correct answer ✔✔Raw
Material, Work-in-process (WIP), finished goods
___________ _________ (_______) ______ are a small electronic device that transmits a unique radio
signal to identify the object to which it is attached. - correct answer ✔✔Radio-frequency identification
(RFID) tags
Reasons for holding inventory:
1) Flow Time
2) _______
3) Batching
4) __________
5) Uncertain Demand
6) ________ - correct answer ✔✔seasonality, buffers, pricing
(T/F) Flow time can be zero. - correct answer ✔✔False
________ is a significant demand change that constitutes a repetitive fluctuation over time. - correct
answer ✔✔Seasonality
, _________ _________ ________ is a strategy for scheduling production such that the rate of output
remains relatively stable over time even though demand varies predictably over the same period. -
correct answer ✔✔Production Smoothing Strategy
Inventory between process steps can serve as ________, meaning that the process steps can operate
independently from each other. - correct answer ✔✔Buffers
______ is ordering more than is needed. - correct answer ✔✔Batching
Road, _____, water, rail, ______, and pipelines are modes of transportation. - correct answer ✔✔air,
electronic
_____ is the most expensive mode of transportation but fastest; ______ is the least expensive and
slowest. - correct answer ✔✔Air, water
In batching, ________ ___ _________ spreads fixed costs across a large volume. - correct answer
✔✔economies of scale
The fixed setup cost can be referred to as the _______ batch, transfer batch, or _______ batch. - correct
answer ✔✔production, procurement
Uncertain (or random) demand is sometimes referred to as ________ demand. - correct answer
✔✔stochastic
_______ ________ (aka ______ ______) refers to inventory needed to buffer against demand
uncertainty. Also called safety inventory. - correct answer ✔✔Safety Stock, Safety Inventory
(T/F) Firms may hold inventory due to a change in the cost or value of inventory. - correct answer
✔✔True
While currency can be used to measure inventory, it needs a _________ to know if its a "small" or
"large" amount. - correct answer ✔✔benchmark
answered to pass
The three forms of inventory are: - correct answer ✔✔raw material, WIP, and finished goods
Managing and controlling inventory means answering these questions:
1) ______ _____ to order? (______)
2) When to order? (timing)
3) What _______ to order? (______)
4) Where to order? (location) - correct answer ✔✔how much, quantity; type, product
Organizational capabilities to facilitate inventory/material management:
1) ________
2) Product demand and tracking (_______ _______)
3) Analytical skills
4) Product ________ and handling assets (_______ ____ ________) - correct answer ✔✔Forecasting,
RFID tags, transportation, modes of transportation
Inventory holding costs can be expressed in the form of:
1) ________ cost of product
2) _______ cost per unit - correct answer ✔✔percentage, holding
_______ is the number of flow units within the process. - correct answer ✔✔Inventory
,________ ______ is the practice of regulating the quantity, location, and type of inventory in a process. -
correct answer ✔✔Inventory Management
The goal of inventory management is to have the right product at the _____ _______ at the right time so
that the firm can _______ _______. - correct answer ✔✔right place, maximize profits
(T/F) Success or failure at inventory management has a significant influence on overall profitability. -
correct answer ✔✔True
1) ________ _______ Inventory: Inventory that is used as the inputs to a process and has not undergone
any transformation in the process.
2) _________ Inventory: The material and components used within the process to complete a product.
3) ________ _______ Inventory: Flow units that have completed processing. - correct answer ✔✔Raw
Material, Work-in-process (WIP), finished goods
___________ _________ (_______) ______ are a small electronic device that transmits a unique radio
signal to identify the object to which it is attached. - correct answer ✔✔Radio-frequency identification
(RFID) tags
Reasons for holding inventory:
1) Flow Time
2) _______
3) Batching
4) __________
5) Uncertain Demand
6) ________ - correct answer ✔✔seasonality, buffers, pricing
(T/F) Flow time can be zero. - correct answer ✔✔False
________ is a significant demand change that constitutes a repetitive fluctuation over time. - correct
answer ✔✔Seasonality
, _________ _________ ________ is a strategy for scheduling production such that the rate of output
remains relatively stable over time even though demand varies predictably over the same period. -
correct answer ✔✔Production Smoothing Strategy
Inventory between process steps can serve as ________, meaning that the process steps can operate
independently from each other. - correct answer ✔✔Buffers
______ is ordering more than is needed. - correct answer ✔✔Batching
Road, _____, water, rail, ______, and pipelines are modes of transportation. - correct answer ✔✔air,
electronic
_____ is the most expensive mode of transportation but fastest; ______ is the least expensive and
slowest. - correct answer ✔✔Air, water
In batching, ________ ___ _________ spreads fixed costs across a large volume. - correct answer
✔✔economies of scale
The fixed setup cost can be referred to as the _______ batch, transfer batch, or _______ batch. - correct
answer ✔✔production, procurement
Uncertain (or random) demand is sometimes referred to as ________ demand. - correct answer
✔✔stochastic
_______ ________ (aka ______ ______) refers to inventory needed to buffer against demand
uncertainty. Also called safety inventory. - correct answer ✔✔Safety Stock, Safety Inventory
(T/F) Firms may hold inventory due to a change in the cost or value of inventory. - correct answer
✔✔True
While currency can be used to measure inventory, it needs a _________ to know if its a "small" or
"large" amount. - correct answer ✔✔benchmark
