MGSC 492 Actual Questions and Correct Answers
Q1
For a transport company fuel may represent as much as % of the total operating budget
Answer: 35%
Q2
What is Vendor Managed Inventory (VMI)?
Answer: 1. The supplier takes responsibility for the inventory held at the client's
premises
Q3
What happens to ownership in Vendor Managed Inventory (VMI)?
Answer: 2. Ownership of the inventory passes to the client when the inventory is
utilized
Q4
How does Vendor Managed Inventory (VMI) impact warehouse inventory levels?
Answer: 3. The overall level of inventory in the client's warehouse can be reduced
Q5
The Quality of Supplies
Answer: substandard goods will need to be stored awaiting collection by the supplier.
When goods are recieved or noticed that they are substandard, the supplier is
contacted and an RMA (return material authorization) number is obtained from the
supplier. This number is attached to all paperwork and the outside of the packaging so
the supplier can process the return effectively
Q6
What is the first level in the Hierarchy of importance?
Answer: Routine purchases- online catalogues
, Q7
What is the second level in the Hierarchy of importance?
Answer: Commodities- quote frequently to get best price- multiple suppliers
Q8
What is the third level in the Hierarchy of importance?
Answer: Critical items- work with approved suppliers to ensure the flow of supply
never stops- bottleneck parts
Q9
What is an example of a critical item in the Hierarchy of importance?
Answer: A specially designed screw that only one supplier can make may cost $1.49
but can stop shipment of a $20,000 piece of equipment
Q10
What is the fourth level in the Hierarchy of importance?
Answer: Strategic Items- develop strategic partnerships with suppliers
Q11
Provide an example of strategic partnership in the Hierarchy of importance.
Answer: Like Pillsbury developing a contract with Sonoco to produce the cans that
they put their product into
Q12
The recieved in a warehouse can be significantly improved if suppliers provide the goods in the
right quantities, at the allotted time, correctly labeled and bar coded
Answer: Speed of processing goods
Q13
Dependent Demand
Answer: can be calculated on a bill of materials- components and raw materials are
DD. SS is not usuaually carried at these levels unless the lead times are long
Q1
For a transport company fuel may represent as much as % of the total operating budget
Answer: 35%
Q2
What is Vendor Managed Inventory (VMI)?
Answer: 1. The supplier takes responsibility for the inventory held at the client's
premises
Q3
What happens to ownership in Vendor Managed Inventory (VMI)?
Answer: 2. Ownership of the inventory passes to the client when the inventory is
utilized
Q4
How does Vendor Managed Inventory (VMI) impact warehouse inventory levels?
Answer: 3. The overall level of inventory in the client's warehouse can be reduced
Q5
The Quality of Supplies
Answer: substandard goods will need to be stored awaiting collection by the supplier.
When goods are recieved or noticed that they are substandard, the supplier is
contacted and an RMA (return material authorization) number is obtained from the
supplier. This number is attached to all paperwork and the outside of the packaging so
the supplier can process the return effectively
Q6
What is the first level in the Hierarchy of importance?
Answer: Routine purchases- online catalogues
, Q7
What is the second level in the Hierarchy of importance?
Answer: Commodities- quote frequently to get best price- multiple suppliers
Q8
What is the third level in the Hierarchy of importance?
Answer: Critical items- work with approved suppliers to ensure the flow of supply
never stops- bottleneck parts
Q9
What is an example of a critical item in the Hierarchy of importance?
Answer: A specially designed screw that only one supplier can make may cost $1.49
but can stop shipment of a $20,000 piece of equipment
Q10
What is the fourth level in the Hierarchy of importance?
Answer: Strategic Items- develop strategic partnerships with suppliers
Q11
Provide an example of strategic partnership in the Hierarchy of importance.
Answer: Like Pillsbury developing a contract with Sonoco to produce the cans that
they put their product into
Q12
The recieved in a warehouse can be significantly improved if suppliers provide the goods in the
right quantities, at the allotted time, correctly labeled and bar coded
Answer: Speed of processing goods
Q13
Dependent Demand
Answer: can be calculated on a bill of materials- components and raw materials are
DD. SS is not usuaually carried at these levels unless the lead times are long
