ISOM 351 Final
What are the reasons to hold inventory:
A. Meet unexpected demand
B. Take advantage of Quantity Discounts
C. Hedge against price increases
D. All of the above - Answer-D. All of the above
Wrong reasons to hold inventory are:
A. Poor quality
B. Unreliable suppliers
C. Poor production reliability
D. All of the above - Answer-D. All of the above
Types of Inventory include:
A. Raw materials
B. Work-in-Process
C. Finished goods
D. All of the above - Answer-D. All of the above
, T/F: EOQ stands for Economic Order Quantity. - Answer-True
T/F: A periodic review system is a system in which an item's inventory position is reviewed periodically
rather than continuously. - Answer-True
T/F: Supply chain management tries to match the flow of materials, services and information with
demand. - Answer-True
T/F: The purpose of supply chain design is to shape a firm's supply chain to meet the competitive
priorities of its operations strategies. - Answer-True
T/F: The fundamental purpose of supply chain design for a manufacturer is to control inventories by
managing the flow of materials. - Answer-True
Which one of the following is TRUE for supply chain management?
A. Supply chain applies to both manufacturing and service organizations.
B. Supply chain applies only to manufacturing because it deals with flow of materials.
C. Supply chain is about suppliers and does not include distributors or customers.
D. Supply chain includes any operation that deals with materials. - Answer-A. Supply chain applies to
both manufacturing and service organizations.
T/F: Supply chain integration is the effective coordination of supply chain processes through the
seamless flow of information to suppliers, up and down the supply chain. - Answer-True
What are the reasons to hold inventory:
A. Meet unexpected demand
B. Take advantage of Quantity Discounts
C. Hedge against price increases
D. All of the above - Answer-D. All of the above
Wrong reasons to hold inventory are:
A. Poor quality
B. Unreliable suppliers
C. Poor production reliability
D. All of the above - Answer-D. All of the above
Types of Inventory include:
A. Raw materials
B. Work-in-Process
C. Finished goods
D. All of the above - Answer-D. All of the above
, T/F: EOQ stands for Economic Order Quantity. - Answer-True
T/F: A periodic review system is a system in which an item's inventory position is reviewed periodically
rather than continuously. - Answer-True
T/F: Supply chain management tries to match the flow of materials, services and information with
demand. - Answer-True
T/F: The purpose of supply chain design is to shape a firm's supply chain to meet the competitive
priorities of its operations strategies. - Answer-True
T/F: The fundamental purpose of supply chain design for a manufacturer is to control inventories by
managing the flow of materials. - Answer-True
Which one of the following is TRUE for supply chain management?
A. Supply chain applies to both manufacturing and service organizations.
B. Supply chain applies only to manufacturing because it deals with flow of materials.
C. Supply chain is about suppliers and does not include distributors or customers.
D. Supply chain includes any operation that deals with materials. - Answer-A. Supply chain applies to
both manufacturing and service organizations.
T/F: Supply chain integration is the effective coordination of supply chain processes through the
seamless flow of information to suppliers, up and down the supply chain. - Answer-True
