MGMT 339 FINAL FINAL TEST 2026
QUESTIONS WITH CORRECT ANSWERS
GRADED A+
◍ Centralized buying pros.
Answer: increase purchasing power, cost savings (bulk orders), better
supplier negotiations invisibility. (better for standardization)
◍ The pull method is illustrated byA.building it so they will
come.B.automobile assembly.C.made-to-order computer systems.D.farm
products..
Answer: C.made-to-order computer systems
◍ Centralized buying cons.
Answer: slower decision-making, less flexibility for individual departments,
increase bureaucracy/complexity
◍ Electronic Data interchange/exchange (EDI).
Answer: tech that enables the transmission of routine business docs in a
standard format from computer to computer
◍ impact of high inventory on ROA.
Answer: can be negative for ROA because it's inventory increases the total
assets while not necessarily increasing profits, leading to lower return on
assets
◍ Conceptual ROP formula.
Answer: =cycle stock + safety stock
◍ The goal of single-digit setups is to have a setup time:A.of less than one
shift.B.of less than 30 minutes.C.of less than 10 minutes.D.of less than one
hour..
, Answer: C.of less than 10 minutes.
◍ Intermodal Transpiration.
Answer: The use of multiple modes of transportation for single shipment ,
such as transporting shipping containers by rail, then truck
◍ make-to-stock.
Answer: traditional production strategy that is used to build products to meet
consumer demand forecasts
◍ Which of the following purposes creates pressure to hold large inventory vs
smaller inventory?.
Answer: a. Minimize stockout and lost salesb. Improve customer servicec.
Reduce ordering costd. Lower transportation coste. Get volume discountsf.
Reduce setup costg. Improve utilization of labor and equipmenth. Reduce
the cost of capitali. Reduce storage and handling costsj. Reduce insurancek.
Reduce taxl. Reduce shrinkage
◍ Inventory Dynamics.
Answer: a balancing act between ordering too little vs. ordering too much
◍ MRP inputs.
Answer: Master schedulebill of materials - BOM
◍ In lean systems, part commonality serves to
increaseA.inventory.B.repeatability.C.the number of deliveries needed.D.the
number of suppliers needed..
Answer: B.repeatability.
◍ What is EOQ.
Answer: Economic order quantity - the order size that minimizes total
annual inventory holding and ordering costs
◍ what is decentralized buying.
Answer: authority is given to local departments or individual managers to
make their own purchasing decisions instead of a single department
◍ shortage gaming.
, Answer: retailers inflating order sizes to counteract rationing when demand
exceeds supply in the market
◍ For approaches to e purchasing and buying.
Answer: Electronic data interchange, catalog hubs, exchanges, options
◍ Closed loop supply chain.
Answer: A supply chain that integrates forward logistics with
reverselogistics, thereby focusing on the complete chain of operations from
the birth to thedeath of a product
◍ dual (multiple) sourcing.
Answer: The awarding of a contract for a service or item to 2+ suppliers for
risk mgmt
◍ Operational classifications (types).
Answer: cycle inventorysafety inventoryanticipation inventorypipeline
inventory
◍ buying.
Answer: There's four approaches to e purchasing and buying and there's
centralized/ decentralized buying
◍ lead time of inventory records.
Answer: Total time from placing order to receiving and stocking the goods
◍ What is the goal of EOQ?.
Answer: Find the optimal order size at minimize his total inventory cost
balancing expenses of ordering with the cost of holding inventory and
preventing stockouts to meet customer demands efficiently
◍ design collaboration.
Answer: Process focusing on jointly designing new services or products
with key suppliers- Early supplier involvement (ESI)- presourcing -value
analysis
◍ Master production schedule.
Answer: states which independent demand items are to be produced, when
QUESTIONS WITH CORRECT ANSWERS
GRADED A+
◍ Centralized buying pros.
Answer: increase purchasing power, cost savings (bulk orders), better
supplier negotiations invisibility. (better for standardization)
◍ The pull method is illustrated byA.building it so they will
come.B.automobile assembly.C.made-to-order computer systems.D.farm
products..
Answer: C.made-to-order computer systems
◍ Centralized buying cons.
Answer: slower decision-making, less flexibility for individual departments,
increase bureaucracy/complexity
◍ Electronic Data interchange/exchange (EDI).
Answer: tech that enables the transmission of routine business docs in a
standard format from computer to computer
◍ impact of high inventory on ROA.
Answer: can be negative for ROA because it's inventory increases the total
assets while not necessarily increasing profits, leading to lower return on
assets
◍ Conceptual ROP formula.
Answer: =cycle stock + safety stock
◍ The goal of single-digit setups is to have a setup time:A.of less than one
shift.B.of less than 30 minutes.C.of less than 10 minutes.D.of less than one
hour..
, Answer: C.of less than 10 minutes.
◍ Intermodal Transpiration.
Answer: The use of multiple modes of transportation for single shipment ,
such as transporting shipping containers by rail, then truck
◍ make-to-stock.
Answer: traditional production strategy that is used to build products to meet
consumer demand forecasts
◍ Which of the following purposes creates pressure to hold large inventory vs
smaller inventory?.
Answer: a. Minimize stockout and lost salesb. Improve customer servicec.
Reduce ordering costd. Lower transportation coste. Get volume discountsf.
Reduce setup costg. Improve utilization of labor and equipmenth. Reduce
the cost of capitali. Reduce storage and handling costsj. Reduce insurancek.
Reduce taxl. Reduce shrinkage
◍ Inventory Dynamics.
Answer: a balancing act between ordering too little vs. ordering too much
◍ MRP inputs.
Answer: Master schedulebill of materials - BOM
◍ In lean systems, part commonality serves to
increaseA.inventory.B.repeatability.C.the number of deliveries needed.D.the
number of suppliers needed..
Answer: B.repeatability.
◍ What is EOQ.
Answer: Economic order quantity - the order size that minimizes total
annual inventory holding and ordering costs
◍ what is decentralized buying.
Answer: authority is given to local departments or individual managers to
make their own purchasing decisions instead of a single department
◍ shortage gaming.
, Answer: retailers inflating order sizes to counteract rationing when demand
exceeds supply in the market
◍ For approaches to e purchasing and buying.
Answer: Electronic data interchange, catalog hubs, exchanges, options
◍ Closed loop supply chain.
Answer: A supply chain that integrates forward logistics with
reverselogistics, thereby focusing on the complete chain of operations from
the birth to thedeath of a product
◍ dual (multiple) sourcing.
Answer: The awarding of a contract for a service or item to 2+ suppliers for
risk mgmt
◍ Operational classifications (types).
Answer: cycle inventorysafety inventoryanticipation inventorypipeline
inventory
◍ buying.
Answer: There's four approaches to e purchasing and buying and there's
centralized/ decentralized buying
◍ lead time of inventory records.
Answer: Total time from placing order to receiving and stocking the goods
◍ What is the goal of EOQ?.
Answer: Find the optimal order size at minimize his total inventory cost
balancing expenses of ordering with the cost of holding inventory and
preventing stockouts to meet customer demands efficiently
◍ design collaboration.
Answer: Process focusing on jointly designing new services or products
with key suppliers- Early supplier involvement (ESI)- presourcing -value
analysis
◍ Master production schedule.
Answer: states which independent demand items are to be produced, when
