SCM- Questions on Test Chap 4-6
One of the main differences between Barcodes and RFID is that Barcodes require a direct line of sight
to read the information and RFID does not
TRUE
The primary purpose of the basic economic order quantity model is
To minimize the sum of ordering cost & Holding cost
Note: The unit that you are holding vs the cost of orders.
The top two primary functions of inventory are to meet customer demand and to buffer against
uncertainty in demand and/or supply
TRUE
Note: All of this is done to meet customer demand
Inventory costs which are dependent on the output quality are called?
Variable Cost
o NOTE: (cost of unit changes, with how many units you make)
o (Fix cost- stays the same no matter how many units you use)
Which inventory stock level is built to satisfy a company’s immediate demand? It is depleted gradually
as customer orders are received and it is replenished cyclically when supply orders are received.
Cycle Stock
Note: IMMIADTE DEMAND (think of immediate cycle wash)
Which inventory stock level is carried above, and beyond which is needed to meet anticipated
demand?
Safety Stock
NOTE: Buffering Against Uncertainty
A type of inventory system in which inventory is only ordered for a one-time stocking is known as:
Single Period Inventory Model
ABC Stocking- Clarification, Classification, Prioritization
Single Period Stocking- Holidays, Events, One-time event
Bin Stock- Pharmacy- Bins - Bins used as stock
Base Stock Level- Using stock at base level ex: using 100 out of 1000 cakes, and
then replenishing stock
, Which of the following is NOT an example of an ordering cost for the products purchased from a
supplier?
The Opportunity Cost of NOT Ordering from a Least Cost Supplier
NOTE!
The type of Inventory that is used to take advantage of a discount price, to take advantage of a
business opportunity, or for the life cycle changes, is known as
Strategic Stock
NOTE: think of discounts (Cyber Monday, Black Friday)
Which one of the following is NOT one of the four (4) reasons to hold inventory?
To Avoid Obsolescence
Chapter 5- Purchasing
One of the main differences between Barcodes and RFID is that Barcodes require a direct line of sight
to read the information and RFID does not
TRUE
The primary purpose of the basic economic order quantity model is
To minimize the sum of ordering cost & Holding cost
Note: The unit that you are holding vs the cost of orders.
The top two primary functions of inventory are to meet customer demand and to buffer against
uncertainty in demand and/or supply
TRUE
Note: All of this is done to meet customer demand
Inventory costs which are dependent on the output quality are called?
Variable Cost
o NOTE: (cost of unit changes, with how many units you make)
o (Fix cost- stays the same no matter how many units you use)
Which inventory stock level is built to satisfy a company’s immediate demand? It is depleted gradually
as customer orders are received and it is replenished cyclically when supply orders are received.
Cycle Stock
Note: IMMIADTE DEMAND (think of immediate cycle wash)
Which inventory stock level is carried above, and beyond which is needed to meet anticipated
demand?
Safety Stock
NOTE: Buffering Against Uncertainty
A type of inventory system in which inventory is only ordered for a one-time stocking is known as:
Single Period Inventory Model
ABC Stocking- Clarification, Classification, Prioritization
Single Period Stocking- Holidays, Events, One-time event
Bin Stock- Pharmacy- Bins - Bins used as stock
Base Stock Level- Using stock at base level ex: using 100 out of 1000 cakes, and
then replenishing stock
, Which of the following is NOT an example of an ordering cost for the products purchased from a
supplier?
The Opportunity Cost of NOT Ordering from a Least Cost Supplier
NOTE!
The type of Inventory that is used to take advantage of a discount price, to take advantage of a
business opportunity, or for the life cycle changes, is known as
Strategic Stock
NOTE: think of discounts (Cyber Monday, Black Friday)
Which one of the following is NOT one of the four (4) reasons to hold inventory?
To Avoid Obsolescence
Chapter 5- Purchasing
