OPSY 5315 Practice Exam 3 questions
n answers rated A+ 2025/2026
A firm's probability of a stockout for a popular item is 2%. Given this information, what is its
service level for this popular item? - correct answer ✔✔98%
If demand per day stays constant and the lead time for a new order increases, then the reorder
point... - correct answer ✔✔Increases.
With regard to the cost-based price model negotiation strategy, which of the following is true? -
correct answer ✔✔Prices are based upon supplier costs.
Supply chain management describes the coordination of all supply chain activities, starting with
_______ and ending with _______. - correct answer ✔✔Raw materials; satisfied customers
What is the cost to prepare a machine or process for production? - correct answer ✔✔Setup
cost
Why is safety stock used in probabilistic models for inventory control? - correct answer
✔✔Uncertain demand raises the possibility of a stockout.
Which of the following industries has the highest supply chain cost as a percentage of sales? -
correct answer ✔✔Petroleum
Which of the following tactics may reduce risks in supplier delivery, logistics, and distribution? -
correct answer ✔✔Effective contracts with penalties
, The cost to produce the goods or services sold for a given period is referred to as... - correct
answer ✔✔Costs of goods sold.
Using the EOQ model, if a firm's order quantity is 500 units and its annual holding cost is greater
than its annual setup cost, then what can we say about the optimal order quantity? - correct
answer ✔✔Optimal order quantity < 500 units
Which of the following statements is true? - correct answer ✔✔A closed-loop supply chain
prepares for returns prior to product introduction.
What is the term for an approach that seeks efficiency of operations through the integration of
all material acquisition, movement, and storage activities? - correct answer ✔✔Logistics
management
A single-period inventory model is NOT applicable for... - correct answer ✔✔Furniture.
Cycle counting... - correct answer ✔✔Is a process by which inventory records are verified.
What is the term of shipping directly from the supplier to the end consumer rather than from
the seller, saving both time and reshipping costs? - correct answer ✔✔Drop shipping
Which of the following does NOT belong to holding costs? - correct answer ✔✔Order
processing
Which organization has developed principles and standards to be used as guidelines for ethical
behavior? - correct answer ✔✔Institute for Supply Management
Which of the following strategies is part of collaboration, part purchasing from few suppliers,
and part vertical integration? - correct answer ✔✔Keiretsu networks
n answers rated A+ 2025/2026
A firm's probability of a stockout for a popular item is 2%. Given this information, what is its
service level for this popular item? - correct answer ✔✔98%
If demand per day stays constant and the lead time for a new order increases, then the reorder
point... - correct answer ✔✔Increases.
With regard to the cost-based price model negotiation strategy, which of the following is true? -
correct answer ✔✔Prices are based upon supplier costs.
Supply chain management describes the coordination of all supply chain activities, starting with
_______ and ending with _______. - correct answer ✔✔Raw materials; satisfied customers
What is the cost to prepare a machine or process for production? - correct answer ✔✔Setup
cost
Why is safety stock used in probabilistic models for inventory control? - correct answer
✔✔Uncertain demand raises the possibility of a stockout.
Which of the following industries has the highest supply chain cost as a percentage of sales? -
correct answer ✔✔Petroleum
Which of the following tactics may reduce risks in supplier delivery, logistics, and distribution? -
correct answer ✔✔Effective contracts with penalties
, The cost to produce the goods or services sold for a given period is referred to as... - correct
answer ✔✔Costs of goods sold.
Using the EOQ model, if a firm's order quantity is 500 units and its annual holding cost is greater
than its annual setup cost, then what can we say about the optimal order quantity? - correct
answer ✔✔Optimal order quantity < 500 units
Which of the following statements is true? - correct answer ✔✔A closed-loop supply chain
prepares for returns prior to product introduction.
What is the term for an approach that seeks efficiency of operations through the integration of
all material acquisition, movement, and storage activities? - correct answer ✔✔Logistics
management
A single-period inventory model is NOT applicable for... - correct answer ✔✔Furniture.
Cycle counting... - correct answer ✔✔Is a process by which inventory records are verified.
What is the term of shipping directly from the supplier to the end consumer rather than from
the seller, saving both time and reshipping costs? - correct answer ✔✔Drop shipping
Which of the following does NOT belong to holding costs? - correct answer ✔✔Order
processing
Which organization has developed principles and standards to be used as guidelines for ethical
behavior? - correct answer ✔✔Institute for Supply Management
Which of the following strategies is part of collaboration, part purchasing from few suppliers,
and part vertical integration? - correct answer ✔✔Keiretsu networks
