4/13/26, 12:32 PM Production & OPs. (FINAL EXAM)
Production & Ops Actual Final Exam | Most Recent Exam 2026 Actual
Comprehensive Real Exam Questions And Verified Answers (100% Correct
Answers) Already Graded A+ | Guaranteed Success | Newest Exam | Just
Released!!
For class C SKUs, why is much looser inventory control appropriate? A
stockout of a class C SKU is not as crucial as for a class A SKU.
B. ****CORRECT***
The inventory holding cost of class C SKUs tends to be low.
C.
Class C SKUs tend to have very low demand.
D.
All of the above.
A perpetual inventory system requires that A.
inventory is constantly being produced.
B.
inventory is always in stock.
C.****CORRECT****
inventory records are always current.
D.
inventory is always on order.
/ 1/21
,4/13/26, 12:32 PM Production & OPs. (FINAL EXAM)
Which of the following are NOT advantages of a periodic review system?
A.***CORRECT***
Lower safety stock
B.
Can permit combining orders to common suppliers
C.
Convenient administration of inventory control
D.
All of the above.
A form of shrinkage called ______ occurs when inventory cannot be used or sold at
full value, owing to model changes, engineering modifications, or unexpectedly low demand.
A.
deterioration
B.
life-cycle shrink
C.***CORRECT***
obsolescence
D.
pilferage
/ 2/21
, 4/13/26, 12:32 PM Production & OPs. (FINAL EXAM)
Which of these statements is NOT required in order for the EOQ model to be a
reasonable approach?
A.
The demand rate is known and constant.
B.**CORRECT***
The setup/ordering cost must exceed the annual holding cost of one unit.
C.
The lead time is known and constant.
D.
No constraints are placed on the size of each lot.
Which of the following costs is NOT considered an inventory holding (or carrying) cost?
A.
inventory storage costs
B.***CORRECT***
inventory transportation costs
C.
inventory shrinkage costs
D.
inventory handling costs
/ 3/21
Production & Ops Actual Final Exam | Most Recent Exam 2026 Actual
Comprehensive Real Exam Questions And Verified Answers (100% Correct
Answers) Already Graded A+ | Guaranteed Success | Newest Exam | Just
Released!!
For class C SKUs, why is much looser inventory control appropriate? A
stockout of a class C SKU is not as crucial as for a class A SKU.
B. ****CORRECT***
The inventory holding cost of class C SKUs tends to be low.
C.
Class C SKUs tend to have very low demand.
D.
All of the above.
A perpetual inventory system requires that A.
inventory is constantly being produced.
B.
inventory is always in stock.
C.****CORRECT****
inventory records are always current.
D.
inventory is always on order.
/ 1/21
,4/13/26, 12:32 PM Production & OPs. (FINAL EXAM)
Which of the following are NOT advantages of a periodic review system?
A.***CORRECT***
Lower safety stock
B.
Can permit combining orders to common suppliers
C.
Convenient administration of inventory control
D.
All of the above.
A form of shrinkage called ______ occurs when inventory cannot be used or sold at
full value, owing to model changes, engineering modifications, or unexpectedly low demand.
A.
deterioration
B.
life-cycle shrink
C.***CORRECT***
obsolescence
D.
pilferage
/ 2/21
, 4/13/26, 12:32 PM Production & OPs. (FINAL EXAM)
Which of these statements is NOT required in order for the EOQ model to be a
reasonable approach?
A.
The demand rate is known and constant.
B.**CORRECT***
The setup/ordering cost must exceed the annual holding cost of one unit.
C.
The lead time is known and constant.
D.
No constraints are placed on the size of each lot.
Which of the following costs is NOT considered an inventory holding (or carrying) cost?
A.
inventory storage costs
B.***CORRECT***
inventory transportation costs
C.
inventory shrinkage costs
D.
inventory handling costs
/ 3/21
