SCMT EXAM 2 STEPHANIE THOMAS
QUESTIONS WITH CORRECT
ANSWERS
When we generate more profit with fewer assets, ROA will be
A. Down
B. About the same
C. Equal
D. Up - Correct Answers -D. Up
Inventory is a component of __________ on the balance sheet.
A. Assets
B. Stock outs
C. Loss
D. Profit - Correct Answers -A. Assets
The % of demand fulfilled from on hand inventory is called _____.
A. Stock out
B. GMROI
C. ROA
D. Fill rate - Correct Answers -D. Fill rate
One of the direct effects of an increase in transportation cost is to reduce _____.
A. GMROI
B. stock outs
C. fill rate
D. ROA - Correct Answers -D. ROA
One of the effects of adding distribution centers is reducing store lead time and
inventory. If store inventory is reduced, the ROA will _______.
A. increase
B. no change
C. decrease - Correct Answers -A. increase
, GMROI _________________________
A. all of these
B. is the Gross Margin Return on Inventory Investment
C. includes gross margin in the calculation
D. none of these
E. measures the performance of inventory - Correct Answers -A. all of these
ROA is profit divided by _____.
A. Assets
B. Revenue
C. Other revenue
D. Liabilities
E. Net worth - Correct Answers -A. Assets
The secondary effect of an increase in inventory may be an increase in ROA if the
increase in inventory causes an increase in sales and profit. The increase in the sales
and profit could be a result of which of the following?
A. Fewer stockouts
B. Fewer lost sales
C. Increase in sales of impulse items with inventory dependent demand
D. All of these - Correct Answers -D. All of these
By spending more money on transportation, one can most likely
I: Increase the lead time
II: Decrease the lead time
III: Increase the variability of lead time
IV: Decrease the variability of lead time.
A. I only
B. II only
C. I & III
D. II & IV - Correct Answers -D. II & IV
As the number of distribution centers increases, inbound transportation costs ________
but outbound transportation costs ________.
A. increase; increase
B. decrease; decrease
C. increase; decrease
D. decrease; increase
E. none of these - Correct Answers -C. increase; decrease
QUESTIONS WITH CORRECT
ANSWERS
When we generate more profit with fewer assets, ROA will be
A. Down
B. About the same
C. Equal
D. Up - Correct Answers -D. Up
Inventory is a component of __________ on the balance sheet.
A. Assets
B. Stock outs
C. Loss
D. Profit - Correct Answers -A. Assets
The % of demand fulfilled from on hand inventory is called _____.
A. Stock out
B. GMROI
C. ROA
D. Fill rate - Correct Answers -D. Fill rate
One of the direct effects of an increase in transportation cost is to reduce _____.
A. GMROI
B. stock outs
C. fill rate
D. ROA - Correct Answers -D. ROA
One of the effects of adding distribution centers is reducing store lead time and
inventory. If store inventory is reduced, the ROA will _______.
A. increase
B. no change
C. decrease - Correct Answers -A. increase
, GMROI _________________________
A. all of these
B. is the Gross Margin Return on Inventory Investment
C. includes gross margin in the calculation
D. none of these
E. measures the performance of inventory - Correct Answers -A. all of these
ROA is profit divided by _____.
A. Assets
B. Revenue
C. Other revenue
D. Liabilities
E. Net worth - Correct Answers -A. Assets
The secondary effect of an increase in inventory may be an increase in ROA if the
increase in inventory causes an increase in sales and profit. The increase in the sales
and profit could be a result of which of the following?
A. Fewer stockouts
B. Fewer lost sales
C. Increase in sales of impulse items with inventory dependent demand
D. All of these - Correct Answers -D. All of these
By spending more money on transportation, one can most likely
I: Increase the lead time
II: Decrease the lead time
III: Increase the variability of lead time
IV: Decrease the variability of lead time.
A. I only
B. II only
C. I & III
D. II & IV - Correct Answers -D. II & IV
As the number of distribution centers increases, inbound transportation costs ________
but outbound transportation costs ________.
A. increase; increase
B. decrease; decrease
C. increase; decrease
D. decrease; increase
E. none of these - Correct Answers -C. increase; decrease
