MGT 4330 Exam 2 Questions with Correct Answers Latest Update 2025/2026
safety stock exists to - Answers provide protection against the uncertainties of supply and
demand
inventory roles - Answers balance supply and demand
buffer uncertainty in supply or demand
enable geographical specialization
a batch of raisin bran that has been made at Kellogg's but not yet packaged in its final cereal
box would be an example of what type of inventory? - Answers work-in-process
ball corporation sells aluminum cans to anheuser busch to use in making six packs of
budweiser. AB has a warehouse located at its plant in St. Louis which contains boxes of empty
cans received from Ball. From AB perspective, the cans in this warehouse represent. - Answers
raw materials and components inventory
taxes and insurance costs are an example of which of the following costs? - Answers carrying
(or holding) costs
John Jones of Jones Corporation determined that the cost related to processing an invoice
from a supplier was approximately $100 per invoice. This cost is an example of: - Answers order
cost
The ABC analysis used for analyzing inventory is an example of - Answers Pareto's Law
what piece of information is identified in the original 12 digit UPC code? - Answers the
manufacturer of the items
____________ inventory is the costliest form of inventory one can hold - Answers finished goods
when small changes generated by a customer produce progressively larger changes at each
stage upstream in the supply chain, this is known as: - Answers bullwhip effect
which of the following are NOT often associated with a vendor-managed-inventory (VMI)
arrangement? - Answers customer recommend to supplier's how they should schedule
production
in the lean systems approach, as a system improves, it should have _______ inventory on hand -
Answers less
as lean systems thinking is implemented, the amount of training that employees receive: -
Answers tends to increase
when lean systems are implemented - Answers fixed and variable costs both tend to decrease
safety stock exists to - Answers provide protection against the uncertainties of supply and
demand
inventory roles - Answers balance supply and demand
buffer uncertainty in supply or demand
enable geographical specialization
a batch of raisin bran that has been made at Kellogg's but not yet packaged in its final cereal
box would be an example of what type of inventory? - Answers work-in-process
ball corporation sells aluminum cans to anheuser busch to use in making six packs of
budweiser. AB has a warehouse located at its plant in St. Louis which contains boxes of empty
cans received from Ball. From AB perspective, the cans in this warehouse represent. - Answers
raw materials and components inventory
taxes and insurance costs are an example of which of the following costs? - Answers carrying
(or holding) costs
John Jones of Jones Corporation determined that the cost related to processing an invoice
from a supplier was approximately $100 per invoice. This cost is an example of: - Answers order
cost
The ABC analysis used for analyzing inventory is an example of - Answers Pareto's Law
what piece of information is identified in the original 12 digit UPC code? - Answers the
manufacturer of the items
____________ inventory is the costliest form of inventory one can hold - Answers finished goods
when small changes generated by a customer produce progressively larger changes at each
stage upstream in the supply chain, this is known as: - Answers bullwhip effect
which of the following are NOT often associated with a vendor-managed-inventory (VMI)
arrangement? - Answers customer recommend to supplier's how they should schedule
production
in the lean systems approach, as a system improves, it should have _______ inventory on hand -
Answers less
as lean systems thinking is implemented, the amount of training that employees receive: -
Answers tends to increase
when lean systems are implemented - Answers fixed and variable costs both tend to decrease
