ISDS 3115 EXAM 3 STUDY GUIDE
2026/2027 ACCURATE QUESTIONS WITH
CORRECT DETAILED ANSWERS ||
100% GUARANTEED PASS
<RECENT VERSION>
1. True/False: Outsourcing is a form of specialization that allows the
outsourcing firm to focus on its key success factors. - ANSWER ✔ True
2. True/False: The bullwhip effect refers to the increasing fluctuations in orders
that often occur as orders move through the supply chain. - ANSWER ✔
True
3. What is the practice of keeping a product generic as long as possible before
customizing? - ANSWER ✔ Postponement
4. A rice mill in south Louisiana purchases the trucking firm that transports
packaged rice to distributors. This is an example of of which of the
following?
A. current transformation
B. Keirestsu
C. Horizontal integration
D. Backward Integration
E. Forward Integration - ANSWER ✔ E. Forward Integration
,5. Local optimization is a supply-chain complication best described as: -
ANSWER ✔ Optimizing one's local area without full knowledge of supply
chain needs.
6. Hewlett-Packard withholds customization of its laser printers as long as
possible. This is an example of what? - ANSWER ✔ Postponement
7. effective use of MRP and other dependent demand models does not require
which of the following - ANSWER ✔ cost of individual components
8. Which of the following statements regarding MRP in services is TRUE? -
ANSWER ✔ Services such as restaurant meals illustrate dependent demand,
and they require product structure trees, bills of material and scheduling
9. which of the following is specifically characterized by continuous and
forced problem solving via a focus on throughput and reduced inventory? -
ANSWER ✔ Just in time (JIT)
10.if the goals of JIT are met, which of the following is a result? - ANSWER ✔
in-transit inventory falls as suppliers are located closer to facilities
11.characteristics of Just-in-time partnerships do NOT include: - ANSWER ✔
large lot sizes to save on setup costs and to gain quantity discounts
12.which of the following is characteristic of lean operations? - ANSWER ✔
Low space requirements
,13.Under what do planning tasks association with job assignments, ordering,
job scheduling, and dispatching typically fall? - ANSWER ✔ Short-range
plans
14.under what do planning associated with production planning and budgeting,
as well as setting employment, inventory, and subcontracting levels typically
fall? - ANSWER ✔ intermedate-range plans
15.which choice best describes the counterseasonal product demand option? -
ANSWER ✔ developing a mix of products that smooths out their demands
16.what is process of tracing upward in the bill of material from the component
to the parent item in order to determine the cause the competent
requirements? - ANSWER ✔ pegging
17.What is the objective of process strategy? - ANSWER ✔ To create a process
that produces offerings meeting customer requirements within cost and
managerial constraints.
18.Enterprise Resource Planning (ERP) - ANSWER ✔ Extension of the MRP
systems to tie in customers and suppliers.
19.ERP benefits - ANSWER ✔ Shares common databases and business
practices, increases the speed and accuracy of information.
20.ERP challenges - ANSWER ✔ Can be expensive and time-consuming to
install.
, 21.What are probabilistic models in inventory management? - ANSWER ✔
Probabilistic models are used when demand is not constant or certain,
allowing businesses to manage inventory levels effectively.
22.What is safety stock? - ANSWER ✔ Safety stock is extra inventory held to
prevent stockouts and achieve a desired service level.
23.What is the formula for Reorder Point (ROP)? - ANSWER ✔ ROP = d x L +
ss, where d is the demand during lead time, L is the lead time, and ss is the
safety stock.
24.What does 'd x L' represent? - ANSWER ✔ 'd x L' represents the demand
during lead time, which is the total expected demand while waiting for a
new order to arrive.
25.What is the single period model in inventory management? - ANSWER ✔
The single period model is used when inventory is ordered for a single
selling period, focusing on balancing the costs of shortage and overage.
26.What are the costs associated with inventory management? - ANSWER ✔
Cs is the cost of shortage, calculated as (sales price/unit) - (cost/unit), and
Co is the cost of overage, calculated as (cost/unit) - salvage value.
27.How is service level calculated? - ANSWER ✔ Service level is calculated as
C_s / (C_s + C_o), where C_s is the cost of shortage and C_o is the cost of
overage.
2026/2027 ACCURATE QUESTIONS WITH
CORRECT DETAILED ANSWERS ||
100% GUARANTEED PASS
<RECENT VERSION>
1. True/False: Outsourcing is a form of specialization that allows the
outsourcing firm to focus on its key success factors. - ANSWER ✔ True
2. True/False: The bullwhip effect refers to the increasing fluctuations in orders
that often occur as orders move through the supply chain. - ANSWER ✔
True
3. What is the practice of keeping a product generic as long as possible before
customizing? - ANSWER ✔ Postponement
4. A rice mill in south Louisiana purchases the trucking firm that transports
packaged rice to distributors. This is an example of of which of the
following?
A. current transformation
B. Keirestsu
C. Horizontal integration
D. Backward Integration
E. Forward Integration - ANSWER ✔ E. Forward Integration
,5. Local optimization is a supply-chain complication best described as: -
ANSWER ✔ Optimizing one's local area without full knowledge of supply
chain needs.
6. Hewlett-Packard withholds customization of its laser printers as long as
possible. This is an example of what? - ANSWER ✔ Postponement
7. effective use of MRP and other dependent demand models does not require
which of the following - ANSWER ✔ cost of individual components
8. Which of the following statements regarding MRP in services is TRUE? -
ANSWER ✔ Services such as restaurant meals illustrate dependent demand,
and they require product structure trees, bills of material and scheduling
9. which of the following is specifically characterized by continuous and
forced problem solving via a focus on throughput and reduced inventory? -
ANSWER ✔ Just in time (JIT)
10.if the goals of JIT are met, which of the following is a result? - ANSWER ✔
in-transit inventory falls as suppliers are located closer to facilities
11.characteristics of Just-in-time partnerships do NOT include: - ANSWER ✔
large lot sizes to save on setup costs and to gain quantity discounts
12.which of the following is characteristic of lean operations? - ANSWER ✔
Low space requirements
,13.Under what do planning tasks association with job assignments, ordering,
job scheduling, and dispatching typically fall? - ANSWER ✔ Short-range
plans
14.under what do planning associated with production planning and budgeting,
as well as setting employment, inventory, and subcontracting levels typically
fall? - ANSWER ✔ intermedate-range plans
15.which choice best describes the counterseasonal product demand option? -
ANSWER ✔ developing a mix of products that smooths out their demands
16.what is process of tracing upward in the bill of material from the component
to the parent item in order to determine the cause the competent
requirements? - ANSWER ✔ pegging
17.What is the objective of process strategy? - ANSWER ✔ To create a process
that produces offerings meeting customer requirements within cost and
managerial constraints.
18.Enterprise Resource Planning (ERP) - ANSWER ✔ Extension of the MRP
systems to tie in customers and suppliers.
19.ERP benefits - ANSWER ✔ Shares common databases and business
practices, increases the speed and accuracy of information.
20.ERP challenges - ANSWER ✔ Can be expensive and time-consuming to
install.
, 21.What are probabilistic models in inventory management? - ANSWER ✔
Probabilistic models are used when demand is not constant or certain,
allowing businesses to manage inventory levels effectively.
22.What is safety stock? - ANSWER ✔ Safety stock is extra inventory held to
prevent stockouts and achieve a desired service level.
23.What is the formula for Reorder Point (ROP)? - ANSWER ✔ ROP = d x L +
ss, where d is the demand during lead time, L is the lead time, and ss is the
safety stock.
24.What does 'd x L' represent? - ANSWER ✔ 'd x L' represents the demand
during lead time, which is the total expected demand while waiting for a
new order to arrive.
25.What is the single period model in inventory management? - ANSWER ✔
The single period model is used when inventory is ordered for a single
selling period, focusing on balancing the costs of shortage and overage.
26.What are the costs associated with inventory management? - ANSWER ✔
Cs is the cost of shortage, calculated as (sales price/unit) - (cost/unit), and
Co is the cost of overage, calculated as (cost/unit) - salvage value.
27.How is service level calculated? - ANSWER ✔ Service level is calculated as
C_s / (C_s + C_o), where C_s is the cost of shortage and C_o is the cost of
overage.
