UARK SCMT 2103 Exam 2- Solved
__________ tends to increase the in-stock probability. - ANSWER-Both (a) and (b)
a) an increase in the cost of stocking out
b) a decrease in the cost of overstocking
A bottleneck is the ______________ part of a process. - ANSWER-Slowest
A merchant is planning how much of a high-margin product to purchase for a special
event. Any product not sold can be used by the store later in a different product
assortment. Which of the following is TRUE? - ANSWER-Both (a) and (c) are true
Everything else held equal, the merchant would prefer to overstock rather than
understock.
The newsvendor model may not be the best inventory decision tool for this application.
A reorder point is a point in _______________________. - ANSWER-A company's
inventory position
A retailer estimated demand for next year's blue sweaters at 1,000 and a standard
deviation of 100. The optimal in-stock probability is about 83% and the order quantity is
1,100. The retailer learns of an attractive offer from a re-seller should any overstocking
occur. Consequently, the order quantity is expected to _________. - ANSWER-increase
A retailer estimated demand for next year's blue sweaters at 1,000 and a standard
deviation of 100. The optimal in-stock probability is about 83% and the order quantity is
1,100. The retailer learns of an attractive offer from a re-seller should any overstocking
occur. Consequently, the order quantity is expected to _________. - ANSWER-increase
A retailer estimated demand for next year's blue sweaters at 1,000 and a standard
deviation of 100. The optimal in-stock probability is about 83% and the order quantity is
1,100. The retailer learns of an expected increase in transportation costs that will affect
profit margin. Consequently, the order quantity is expected to _________. - ANSWER-
decrease
A retailer's risk decreases ____________. - ANSWER-all of the above
when its supplier lowers its prices.
when it locates favorable salvage alternatives.
when its transportation costs decrease.
, A store receives a low-margin consumable with a shelf life of only a few days after
which the item discarded. Which of the following is TRUE? - ANSWER-Everything else
held equal, the merchant would prefer to understock rather than overstock.
Advanced shipment notices (ASNs) is a ___________-level information type. -
ANSWER-supplier
As a customer increases service level to 99% from 97%, what will likely happen? -
ANSWER-The customer will increase safety stock
As lead time variability increases, what should happen to safety stock? - ANSWER-It
should increase
As products move through their lifecycles more quickly, which type of flexibility becomes
more important? - ANSWER-New product
As the order quantity decreases, what happens to inventory holding cost? - ANSWER-It
should decrease
As the order quantity decreases, what happens to setup cost? - ANSWER-It should
increase
Big data is " bigger" because of which factor? - ANSWER-All of the above
More volume
More variety
More velocity
Capital costs can be viewed as the _________________ associated with the money
tied up in inventory. - ANSWER-Opportunity
Customer sentiment is what type of data? - ANSWER-Structured
Data that is captured at retail checkout is referred to as __________________ data. -
ANSWER-point-of-sale
Everything else held equal for an optimal in-stock probability of 83%, an increase in the
variation of average demand will mean ___________. - ANSWER-an increase in the
optimal order quantity.
Everything else held equal, a decrease in the cost of overstocking is likely to
_________. - ANSWER-Increase the unit profit margin
Everything else held equal, an increase in transportation cost is likely to _________. -
ANSWER-both (a) and (c) are correct
__________ tends to increase the in-stock probability. - ANSWER-Both (a) and (b)
a) an increase in the cost of stocking out
b) a decrease in the cost of overstocking
A bottleneck is the ______________ part of a process. - ANSWER-Slowest
A merchant is planning how much of a high-margin product to purchase for a special
event. Any product not sold can be used by the store later in a different product
assortment. Which of the following is TRUE? - ANSWER-Both (a) and (c) are true
Everything else held equal, the merchant would prefer to overstock rather than
understock.
The newsvendor model may not be the best inventory decision tool for this application.
A reorder point is a point in _______________________. - ANSWER-A company's
inventory position
A retailer estimated demand for next year's blue sweaters at 1,000 and a standard
deviation of 100. The optimal in-stock probability is about 83% and the order quantity is
1,100. The retailer learns of an attractive offer from a re-seller should any overstocking
occur. Consequently, the order quantity is expected to _________. - ANSWER-increase
A retailer estimated demand for next year's blue sweaters at 1,000 and a standard
deviation of 100. The optimal in-stock probability is about 83% and the order quantity is
1,100. The retailer learns of an attractive offer from a re-seller should any overstocking
occur. Consequently, the order quantity is expected to _________. - ANSWER-increase
A retailer estimated demand for next year's blue sweaters at 1,000 and a standard
deviation of 100. The optimal in-stock probability is about 83% and the order quantity is
1,100. The retailer learns of an expected increase in transportation costs that will affect
profit margin. Consequently, the order quantity is expected to _________. - ANSWER-
decrease
A retailer's risk decreases ____________. - ANSWER-all of the above
when its supplier lowers its prices.
when it locates favorable salvage alternatives.
when its transportation costs decrease.
, A store receives a low-margin consumable with a shelf life of only a few days after
which the item discarded. Which of the following is TRUE? - ANSWER-Everything else
held equal, the merchant would prefer to understock rather than overstock.
Advanced shipment notices (ASNs) is a ___________-level information type. -
ANSWER-supplier
As a customer increases service level to 99% from 97%, what will likely happen? -
ANSWER-The customer will increase safety stock
As lead time variability increases, what should happen to safety stock? - ANSWER-It
should increase
As products move through their lifecycles more quickly, which type of flexibility becomes
more important? - ANSWER-New product
As the order quantity decreases, what happens to inventory holding cost? - ANSWER-It
should decrease
As the order quantity decreases, what happens to setup cost? - ANSWER-It should
increase
Big data is " bigger" because of which factor? - ANSWER-All of the above
More volume
More variety
More velocity
Capital costs can be viewed as the _________________ associated with the money
tied up in inventory. - ANSWER-Opportunity
Customer sentiment is what type of data? - ANSWER-Structured
Data that is captured at retail checkout is referred to as __________________ data. -
ANSWER-point-of-sale
Everything else held equal for an optimal in-stock probability of 83%, an increase in the
variation of average demand will mean ___________. - ANSWER-an increase in the
optimal order quantity.
Everything else held equal, a decrease in the cost of overstocking is likely to
_________. - ANSWER-Increase the unit profit margin
Everything else held equal, an increase in transportation cost is likely to _________. -
ANSWER-both (a) and (c) are correct
