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UARK INTRODUCTION TO SUPPLY CHAIN EXAM 3 QUESTIONS AND CORRECT ANSWERS GRADED A+ 2025 UARK INTRODUCTION TO SUPPLY CHAIN EXAM 3
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Which is a cost associated with inventory?
Item cost
A. Ordering or setup cost
B. Shortage cost
C. Carrying cost
D. All of the above
d
Which has the correct order of lead time processes?
A. Order creation, transit, picking, staging
B. Order creation, picking, staging, transit
C. Order creation, staging, picking, transit
D. Order creation, staging, transit, picking
b
Which are components of lead time?
A. Order picking
B. Loading onto the truck
C. Order transmittal
D. Waiting in the store checkout line
E. Forecasting sales
a, b, c
In a retail store, when does the lead time end?
A. When the inventory is stocked on the shelf
B. When the inventory ships from the DC
C. When the inventory is received in the backroom
D. When the inventory scans at point of sale
a
Which is a common bottleneck mentioned in the video that increases lead time?
A. Slow checkout lines at retail stores
B. Traffic congestion
C. Too many holidays
D. Receiving facilities at or near capacity
A. uncertainty
B. creation
C. magnitude
D. demand
a
If a company places a replenishment order on the same day each week, which policy is being used?
A. Unit review
B. Hybrid review
C. Continuous review
D. Periodic review
d
If a customer uses a continuous review policy to manage inventory, when is it possible to stockout?
A.Only during the review interval
B. Only during the lead time
C. Any time
D. Never
b
How can a company's inventory position be determined?
A. On-hand inventory plus on-order inventory minus backorders
B. On-order inventory plus backorders
C. On-hand inventory plus on-order inventory
D. On-hand inventory minus on-order inventory minus backorders
a
Safety stock increases which aspect of a continuous review policy?
A. Lead time
B. Reorder point
C. Both A and B
D. Demand
b
Which inventory policy will create the most uncertainty for a company's transportation providers?
A. Hybrid review
B. Unit review
A. Inventory position
B. On-order inventory
C. Backorders
D. On-hand inventory
a
Inventory is good in the right _______________.
A. Quantity
B. Temperature
C. Company
D. Policy
a
Inventory is a supply of goods that are held for purpose of _______________.
A. Lost sales
B. Creating goodwill
C. Capital investment
D. Future utilization
d
Which form of inventory is being transformed into a final product?
A. Raw materials
B. Work-in-process
C. Finished goods
D. Backorders
b
Which type of inventory allows a company to take advantage of transportation utilization?
A. Cycle stock
B. Safety stock
C. Anticipatory inventory
D. In-transit inventory
a
Which of the following is/are a form of inventory?
A. Raw materials
B. Work-in-process
C. Finished goods
D. Backorders
a, b, c
A. Fastest
B. Slowest
C. Most variable
D. Smoothest
b
Which form of inventory is the most expensive to hold?
A. Raw materials
B. Work-in-process
C. Finished goods
D. Backorders
c
Which type of inventory is the amount of the expected amount of inventory on- hand when the next replenishment arrives?
A. Cycle stock
B. Safety stock
C. Anticipatory inventory
D. In-transit inventory
b
Capital costs can be viewed as the _________________ associated with the money tied up in inventory.
A. Opportunity
B. Reduction
C. Storage
D. Interest
a
The cost associated with inventory shrink is classified as a ________ cost.
A. Capital
B. Storage
C. Risk
D. Service
c
Obsolescence is likely a bigger problem for which type of product.
A. Can of green beans
B. Fresh apples
C. Toilet paper
D. Cereal
C. adding it to
D. subtracting
a
If the inventory carrying cost percentage is 25%, then how much would it cost to carry an inventory with a value of $900?
A. $
B. $
C. $
D. $
a
If lead time increases, what should happen to the reorder point?
A. It should stay the same.
B. It should decrease.
C. It should increase.
c
As the order quantity decreases, what happens to inventory holding cost?
A. It should stay the same.
B. It should decrease.
C. It should increase.
b
Which costs determine the Economic Order Quantity?
A. Holding cost
B. Setup cost
C. Backroom storage cost
D. Margin
a, b
The Economic Order Quantity (EOQ) seeks to...
A. Minimize the setup cost and holding cost.
B. Maximize the products in stock.
C. Always avoid having a product out of stock.
D. Order the correct amount to avoid stock outs.
a
As the order quantity decreases, what happens to setup cost?
If the forecast of demand increases, what will happen to the reorder point?
A. It should stay the same.
B. It should decrease.
C. It should increase.
c
As lead time variability increases, what should happen to safety stock?
A. It should stay the same.
B. It should decrease.
C. It should increase.
c
As a customer increases service level to 99% from 97%, what will likely happen?
A. The customer will hold more cycle stock.
B. The customer will increase safety stock.
C. Demand during lead time must increase.
D. The customer will decrease safety stock.
b
If a truck is late and no stockout actually occurred, which statement is accurate?
A. There was enough safety stock to cover the longer lead time.
B. There was enough cycle stock to cover the longer lead time.
C. The reorder point was adjusted because the truck was late.
D. These two things are not simultaneously possible.
a
Inventory holding cost is derived from which two factors?
A. Service level and inventory carrying cost%
B. Inventory carrying cost % and item cost
C. Item cost and setup cost
D. Inventory carrying cost % and setup cost
b
Which is an alternate (instead of analytical) approach to determine demand and lead time parameters?
A. Empirical
B. Estimated
C. Mathematical
D. Derived
B. Who should place the order?
C. When should an order be placed?
D. How much will the order cost?
a, c
The long tail of demand refers to an increased _____________________________.
A. Number of distribution points
B. Number of suppliers
C. Number of store employees
D. Number of SKUs
d
Transportation is a key part of retailers' strategies to ________________________________.
A. Build bigger stores
B. Bridge the physical and digital environments
C. Sell a lower number of SKUS
D. Eliminate all inventory
b
What percentage of total GDP does transportation account for?
A. 1%
B. 5%
C. 9%
D. 12%
c
In the future, how is the heterogeneity of products on a given truckload expected to change?
A. It is not expected to change.
B. It is expected to increase.
C. It is expected to decrease.
b
At the economy level, the price of transportation is ______________. At the carrier level, it is __________________.
A. Elastic, inelastic
B. Inelastic, elastic
C. Elastic, elastic
D. Inelastic, inelastic
b
