ISDS 3115 Test 2 Final / ISDS 3115 Test 2 –
Complete Study Guide & Practice Questions
Outsourcing is a form of specialization that allows the outsourcing firm to focus on
its key success factors.
True
False - ---✔✔✔ANSWER----True
Outsourcing:
A. utilizes the efficiency that comes with specialization.
B. allows the outsourcing firm to focus on its key success factors.
C. transfers traditional internal activities to outside vendors.
,D. All of the above are true of outsourcing.
E. None of the above is true of outsourcing. - ---✔✔✔ANSWER----D. All of
the above are true of outsourcing.
The supply chain management opportunity called postponement involves delaying
deliveries to avoid accumulation of inventory at the customer's site.
True
False - ---✔✔✔ANSWER----False
A restaurant runs a special promotion on lobster and plans to sell twice as many
lobsters as usual. When this large order is sent to the distributor, the distributor
assumes the large size is a trend, not a one-time event. The distributor therefore
places an even larger order with the lobsterman.
This behavior is the result of which of the following?
A. postponement
B. double marginalization
C. CPFR
D. the bullwhip effect
E. vendor-managed inventory - ---✔✔✔ANSWER----D. the bullwhip effect
What term is used to describe the outsourcing of logistics?
, A. third-party logistics (3PL)
B. shipper-managed inventory (SMI)
C. sub-logistics
D. hollow logistics
E. e-logistics - ---✔✔✔ANSWER----A. third-party logistics (3PL)
Which of the following statements about ABC analysis is FALSE?
A. ABC analysis is based on the presumption that controlling the few most
important items produces the vast majority of inventory savings.
B. In ABC analysis, forecasting methods for "C" items may be less sophisticated
than for "A" items.
C. Criteria other than annual dollar volume, such as high holding cost or delivery
problems, can determine item classification in ABC analysis.
D. ABC analysis is based on the presumption that all items must be tightly
controlled to produce important cost savings.
E. In ABC analysis, "A" items should have tighter physical inventory control than
"B" or "C" items have. - ---✔✔✔ANSWER----D. ABC analysis is based on
the presumption that all items must be tightly controlled to produce important
cost savings.
What is the primary purpose of the basic economic order quantity model shown
below?
Q* = SQRT 2DS/H
Complete Study Guide & Practice Questions
Outsourcing is a form of specialization that allows the outsourcing firm to focus on
its key success factors.
True
False - ---✔✔✔ANSWER----True
Outsourcing:
A. utilizes the efficiency that comes with specialization.
B. allows the outsourcing firm to focus on its key success factors.
C. transfers traditional internal activities to outside vendors.
,D. All of the above are true of outsourcing.
E. None of the above is true of outsourcing. - ---✔✔✔ANSWER----D. All of
the above are true of outsourcing.
The supply chain management opportunity called postponement involves delaying
deliveries to avoid accumulation of inventory at the customer's site.
True
False - ---✔✔✔ANSWER----False
A restaurant runs a special promotion on lobster and plans to sell twice as many
lobsters as usual. When this large order is sent to the distributor, the distributor
assumes the large size is a trend, not a one-time event. The distributor therefore
places an even larger order with the lobsterman.
This behavior is the result of which of the following?
A. postponement
B. double marginalization
C. CPFR
D. the bullwhip effect
E. vendor-managed inventory - ---✔✔✔ANSWER----D. the bullwhip effect
What term is used to describe the outsourcing of logistics?
, A. third-party logistics (3PL)
B. shipper-managed inventory (SMI)
C. sub-logistics
D. hollow logistics
E. e-logistics - ---✔✔✔ANSWER----A. third-party logistics (3PL)
Which of the following statements about ABC analysis is FALSE?
A. ABC analysis is based on the presumption that controlling the few most
important items produces the vast majority of inventory savings.
B. In ABC analysis, forecasting methods for "C" items may be less sophisticated
than for "A" items.
C. Criteria other than annual dollar volume, such as high holding cost or delivery
problems, can determine item classification in ABC analysis.
D. ABC analysis is based on the presumption that all items must be tightly
controlled to produce important cost savings.
E. In ABC analysis, "A" items should have tighter physical inventory control than
"B" or "C" items have. - ---✔✔✔ANSWER----D. ABC analysis is based on
the presumption that all items must be tightly controlled to produce important
cost savings.
What is the primary purpose of the basic economic order quantity model shown
below?
Q* = SQRT 2DS/H
