LSU ISDS 3115 FINAL PRACTICE EXAM QUESTIONS
WITH VERIFIED ANSWERS
The transfer of some of what are traditional internal activities and resources of a firm to
outside vendors is: - Answers - outsourcing
True/False Savings in the supply chain exert more leverage as the firm's net profit
margin decreases. - Answers - True
True/False:
The supply chain management opportunity called postponement involves delaying
deliveries to avoid accumulation of inventory at the customer's site. - Answers - False
Local optimization is a supply-chain complication best described as: - Answers -
optimizing one's local area without full knowledge of supply chain needs.
What term is used to describe the outsourcing of logistics? - Answers - third-party
logistics (3PL)
Which of the following would NOT generally be a motive for a firm to hold inventories?
A.
to hedge against inflation
B.
to take advantage of quantity discounts
C.
to minimize holding costs
D.
to decouple various parts of the production process
E.
to provide a selection of goods for anticipated customer demand and to separate the
firm from fluctuations in that demand - Answers - C. to minimize holding costs
Which of these statements about the production order quantity model is FALSE?
A.
The production order quantity model is appropriate when the assumptions of the basic
EOQ model are met, except that receipt is noninstantaneous.
B.
Because receipt is noninstantaneous, some units are used immediately and not stored
in inventory.
C.
Average inventory is more than one-half of the production order quantity.
D.
, All else equal, the smaller the ratio of demand rate to production rate, the smaller is the
production order quantity.
E.
None of the above is false. - Answers - C. Average inventory is more than one-half of
the production order quantity.
The proper quantity of safety stock is typically determined by: - Answers - setting the
level of safety stock so that a given stockout risk is not exceeded.
An advantage of the fixed-period inventory system is that: - Answers - there is no
physical count of inventory items when an item is withdrawn.
In MRP, the number of units projected to be available at the beginning of each time
period refers to: - Answers - projected on hand
Which of the following lot-sizing techniques results in the lowest holding costs? -
Answers - lot-for-lot
Enterprise resource planning (ERP):
A.
does not integrate well with functional areas other than operations.
B.
seldom requires software upgrade or enhancement.
C.
is inexpensive to implement.
D.
automates and integrates the majority of business processes.
E.
all of the above - Answers - D. automates and integrates the majority of business
processes
Which of the following statements regarding a pull system is TRUE?
A.
Problems become more obvious.
B.
Work is pulled to the downstream stations before it is actually needed.
C.
Manufacturing cycle time is increased.
D.
Large lots are pulled from upstream stations.
E.
None of the above is true of a pull system. - Answers - A. Problems become more
obvious
WITH VERIFIED ANSWERS
The transfer of some of what are traditional internal activities and resources of a firm to
outside vendors is: - Answers - outsourcing
True/False Savings in the supply chain exert more leverage as the firm's net profit
margin decreases. - Answers - True
True/False:
The supply chain management opportunity called postponement involves delaying
deliveries to avoid accumulation of inventory at the customer's site. - Answers - False
Local optimization is a supply-chain complication best described as: - Answers -
optimizing one's local area without full knowledge of supply chain needs.
What term is used to describe the outsourcing of logistics? - Answers - third-party
logistics (3PL)
Which of the following would NOT generally be a motive for a firm to hold inventories?
A.
to hedge against inflation
B.
to take advantage of quantity discounts
C.
to minimize holding costs
D.
to decouple various parts of the production process
E.
to provide a selection of goods for anticipated customer demand and to separate the
firm from fluctuations in that demand - Answers - C. to minimize holding costs
Which of these statements about the production order quantity model is FALSE?
A.
The production order quantity model is appropriate when the assumptions of the basic
EOQ model are met, except that receipt is noninstantaneous.
B.
Because receipt is noninstantaneous, some units are used immediately and not stored
in inventory.
C.
Average inventory is more than one-half of the production order quantity.
D.
, All else equal, the smaller the ratio of demand rate to production rate, the smaller is the
production order quantity.
E.
None of the above is false. - Answers - C. Average inventory is more than one-half of
the production order quantity.
The proper quantity of safety stock is typically determined by: - Answers - setting the
level of safety stock so that a given stockout risk is not exceeded.
An advantage of the fixed-period inventory system is that: - Answers - there is no
physical count of inventory items when an item is withdrawn.
In MRP, the number of units projected to be available at the beginning of each time
period refers to: - Answers - projected on hand
Which of the following lot-sizing techniques results in the lowest holding costs? -
Answers - lot-for-lot
Enterprise resource planning (ERP):
A.
does not integrate well with functional areas other than operations.
B.
seldom requires software upgrade or enhancement.
C.
is inexpensive to implement.
D.
automates and integrates the majority of business processes.
E.
all of the above - Answers - D. automates and integrates the majority of business
processes
Which of the following statements regarding a pull system is TRUE?
A.
Problems become more obvious.
B.
Work is pulled to the downstream stations before it is actually needed.
C.
Manufacturing cycle time is increased.
D.
Large lots are pulled from upstream stations.
E.
None of the above is true of a pull system. - Answers - A. Problems become more
obvious
