SCM 3301 EXAM 3 REVIEW QUESTIONS
AND ANSWERS 100% PASS 2026/2027
When a grocery store orders a large shipment of frozen turkeys just before Thanksgiving, this
type of inventory is typically called: - ANS Anticipation Inventory
The following is TRUE about Inventory - ANS Firms increase inventory because there are price
discounts or transportation discounts associated with ordering in larger quantities
The following is a TRUE statement about inventory within a continuous review system: -
ANS When demand increases, Economic Order Quantity increases
Which one of the following normal curves has the SMALLEST Standard Deviation? - ANS B
The smallest/thinnest one
Historically, demand has averaged 40 units with a standard deviation of 20. The company
currently has 79 units in stock. What is the Service Level? - ANS 97.441%
Find the probability associated with Z and then add .5
Given normally distributed data with
Average = 561
Standard Deviation = 88
@2026 ALLRIGHTS RESERVED 1
, What is the Z associated with the value: 598 - ANS .42
What is the probability of a random observation from normally distributed data being BELOW
average? - ANS 50%
Historically, demand has averaged 2000 units per week with a standard deviation of 450. The
company currently has 1010 units in stock. What is the probability of a stockout? -
ANS 98.610%
If Z is negative, use the positive value and add .5 and multiply by 100.
Historically, demand has averaged 1447 units per week with a standard deviation of 715. The
company currently has 2855 units in stock. What is the probability of a stockout? -
ANS 2.442%
If Z is positive, subtact .5-(p) *100 to find the probability of a stockout.
An Office Manager uses a Periodic Review Inventory System: they check the inventory in the
Office Supply Closet once every 10 days, placing an order with their supplier depending on the
inventory level in the closet. The manager has set a restocking level of 500 highlighters for their
closet. This week, the manager has counted 180 highlighters in the closet.How many
highlighters will the manager order from their supplier? In other words, what is the Order
Quantity? - ANS 320
Order quantity (Q)= R-I
R=restocking order-up-to-level
I=Inventory level at the time of review
500-180=320
An Office Manager uses a Periodic Review Inventory System: they check the inventory in their
Office Supply Closet once every 10 days, placing an order with their supplier depending on the
inventory level in the closet. This week, the manager has counted 160 boxes of paper clips in
@2026 ALLRIGHTS RESERVED 2
AND ANSWERS 100% PASS 2026/2027
When a grocery store orders a large shipment of frozen turkeys just before Thanksgiving, this
type of inventory is typically called: - ANS Anticipation Inventory
The following is TRUE about Inventory - ANS Firms increase inventory because there are price
discounts or transportation discounts associated with ordering in larger quantities
The following is a TRUE statement about inventory within a continuous review system: -
ANS When demand increases, Economic Order Quantity increases
Which one of the following normal curves has the SMALLEST Standard Deviation? - ANS B
The smallest/thinnest one
Historically, demand has averaged 40 units with a standard deviation of 20. The company
currently has 79 units in stock. What is the Service Level? - ANS 97.441%
Find the probability associated with Z and then add .5
Given normally distributed data with
Average = 561
Standard Deviation = 88
@2026 ALLRIGHTS RESERVED 1
, What is the Z associated with the value: 598 - ANS .42
What is the probability of a random observation from normally distributed data being BELOW
average? - ANS 50%
Historically, demand has averaged 2000 units per week with a standard deviation of 450. The
company currently has 1010 units in stock. What is the probability of a stockout? -
ANS 98.610%
If Z is negative, use the positive value and add .5 and multiply by 100.
Historically, demand has averaged 1447 units per week with a standard deviation of 715. The
company currently has 2855 units in stock. What is the probability of a stockout? -
ANS 2.442%
If Z is positive, subtact .5-(p) *100 to find the probability of a stockout.
An Office Manager uses a Periodic Review Inventory System: they check the inventory in the
Office Supply Closet once every 10 days, placing an order with their supplier depending on the
inventory level in the closet. The manager has set a restocking level of 500 highlighters for their
closet. This week, the manager has counted 180 highlighters in the closet.How many
highlighters will the manager order from their supplier? In other words, what is the Order
Quantity? - ANS 320
Order quantity (Q)= R-I
R=restocking order-up-to-level
I=Inventory level at the time of review
500-180=320
An Office Manager uses a Periodic Review Inventory System: they check the inventory in their
Office Supply Closet once every 10 days, placing an order with their supplier depending on the
inventory level in the closet. This week, the manager has counted 160 boxes of paper clips in
@2026 ALLRIGHTS RESERVED 2
