OM Test 3 Exam UPDATED QUESTIONS
AND CORRECT ANSWERS
A supply chain ends with
a. suppliers
b. distributors
c. a satisfied customer
d. manufacturers - CORRECT ANSWER A satisfied customer
What is developing the ability to produce goods or services preciously purchased or actually
buying a supplier or a distributor?
a. horizontal integration
b. vertical integration
c. outsourcing
d. virtual companies - CORRECT ANSWER vertical integration
A lawnmower assembly plant uses variety of nuts, bolts, screws and other fasteners in its
operation. Its supplier delivers these items directly to the point of use of the assembly line
and ensures that there are always sufficient quantities of fasteners to maintain the production
schedule.
This is an example of
a. postponement
b. e-procurement
c. vendor-managed inventory
d. single stage control of replenishment - CORRECT ANSWER vendor-managed
inventory
Baker Mfg Inc. wishes to compare its inventory turnover to those of industry leaders, who
have turnover of about 13 times per year and 8% of their assets invested in inventory.
net revenue: $27,500
cost of sales: $19,980
, inventory: $1,280
total assets: $17,240
1. What is bakers Inventory turnover?
Inventory turnover= cost of sales/inventory
2. What is Bakers percentage of assets committed to inventory?
percentage of assets committed to inventory= inventory/total assets x100%
3. how does bakers performance compare to the industry leaders?
- worse
- better
- in line with industry - CORRECT ANSWER 1. 15.61 times per year
2. 7.42%
3. Better
The grocery industry has an annual inventory turnover of about 16 times. Organic grocers,
Inc., had a cost of goods sold last year of $11,740,000; its average inventory was $980,050.
What was organic Grovers' inventory turnover, and how does that performance compare with
that of the industry?
1. what was organic grocers inventory turnover?
2. how does organic grocers performance compare with that of the industry?
- worse than
- better than
- in line with - CORRECT ANSWER 1. 11.98 times per year
2. it is worse than the industry
AND CORRECT ANSWERS
A supply chain ends with
a. suppliers
b. distributors
c. a satisfied customer
d. manufacturers - CORRECT ANSWER A satisfied customer
What is developing the ability to produce goods or services preciously purchased or actually
buying a supplier or a distributor?
a. horizontal integration
b. vertical integration
c. outsourcing
d. virtual companies - CORRECT ANSWER vertical integration
A lawnmower assembly plant uses variety of nuts, bolts, screws and other fasteners in its
operation. Its supplier delivers these items directly to the point of use of the assembly line
and ensures that there are always sufficient quantities of fasteners to maintain the production
schedule.
This is an example of
a. postponement
b. e-procurement
c. vendor-managed inventory
d. single stage control of replenishment - CORRECT ANSWER vendor-managed
inventory
Baker Mfg Inc. wishes to compare its inventory turnover to those of industry leaders, who
have turnover of about 13 times per year and 8% of their assets invested in inventory.
net revenue: $27,500
cost of sales: $19,980
, inventory: $1,280
total assets: $17,240
1. What is bakers Inventory turnover?
Inventory turnover= cost of sales/inventory
2. What is Bakers percentage of assets committed to inventory?
percentage of assets committed to inventory= inventory/total assets x100%
3. how does bakers performance compare to the industry leaders?
- worse
- better
- in line with industry - CORRECT ANSWER 1. 15.61 times per year
2. 7.42%
3. Better
The grocery industry has an annual inventory turnover of about 16 times. Organic grocers,
Inc., had a cost of goods sold last year of $11,740,000; its average inventory was $980,050.
What was organic Grovers' inventory turnover, and how does that performance compare with
that of the industry?
1. what was organic grocers inventory turnover?
2. how does organic grocers performance compare with that of the industry?
- worse than
- better than
- in line with - CORRECT ANSWER 1. 11.98 times per year
2. it is worse than the industry
