LSCM 3960 UNT EXAM RATED A+
Total annual ORDER COST in the simple EOQ model is a function of the cost of placing
an order and: - Answer- the number of orders per year
Time utility depends on - Answer- Transportation companies delivering on time to
customers.
If there is demand variability and you place an order (re-order point) when the units at
hand equal average demand during lead time, you will - Answer-
Which of the following statements is incorrect? - Answer-
If an item is expensive and of critical importance to the firm, it should be managed using
a fixed order interval approach to inventory management. - Answer- False
If we compare forecasts errors (say, total absolute deviation) from two different
forecasts (FE1 from moving averages and FE2 from exponential smoothing), then which
of the following conclusions is CORRECT? - Answer- If FE1 = FE2, then we should
chose moving averages because it is simpler and requires less data and computation
power
How an organization receives an order, how it fills an order, and how it ships an order
affects all of the following, EXCEPT: - Answer-
Supply-demand misalignment is a big problem in supply chains, especially for new and
innovative products. Based on the chart below, which is INCORRECT? - Answer-
Channel partners under-order to meet avoid excess inventory
Which of the following represents the relationship between cost of lost sales and
inventory cost? - Answer- Option a
An example of electric lighting products company that faces very volatile demand was
discussed in class. The typical demand pattern for this company was: 10, 20, 15, 3000,
12, 18, 16, 10, 8, 4000, 6, 10, 2500 units per week. The peaks in demand came from
building contractors. This led to additional supply chain costs related to procurement,
manufacturing, and transportation. To overcome the problem, the company developed a
strategy of providing an incentive of 2% cash discount for contractors that placed their
order 4 weeks in advance and 5% cash discount to contractors that placed their orders
6 weeks in advance. This strategy is an example of: - Answer- Demand management
Which of the following components of Order Management is INCORRECTLY matched
with its description? - Answer-
, A logistics manager must consider other functions in the company such as production,
finance, and marketing while designing a logistics system. This might cause sub-
optimization of some logistics functions. This ensures optimality at___________. -
Answer- Organization level
Functional silos refers to: - Answer- Lack of coordination between departments.
Logistics costs (measured as a percentage of sales) would be of the LEAST concern to
a company which produces the following product(s): - Answer- Automobiles
Which statement is not true? - Answer- Changing to premium transportation modes
such as air will increase packaging costs due to more risk of damage.
Which reason for physical supply inventory involves purchases for hedging against
future price increases, strikes, changing political policies, delayed deliveries, rising or
falling interest rates, or currency fluctuations in world markets? - Answer-
anticipatory/speculative stocks
Logistics seek cost trade-offs. A "positive" cost trade-off is a situation where: - Answer-
Some costs increase, some decrease, and the net effect is that total costs decrease.
Which of the following is NOT correctly matched? - Answer-
Following is an example of: - Answer- Logistics Channel Analysis
Traditional measures of customer service are inward looking (focused on firm
performance) and new measures of customer service are outward facing (focused on
customer experience). Which of the following is a NEW measure? - Answer-
In the table above which rows are CORRECTLY matched for private versus public
distribution? - Answer- Rows 2, 3, 5, 7
What of the following is INCORRECT regarding transportation documentation? -
Answer- bill of lading is a freight document used to consolidate freight, coordinate
shipment deliveries, and take full advantage of container capacity
Which of the following statements from the chapter on sourcing is INCORRECT? -
Answer- The objective of the strategic procurement process is to purchase goods and
services at the "lowest" traditional purchase price.
All of the following are reasons why companies own their own private fleet, EXCEPT -
Answer- Low fixed cost
Which of the following is INCORRECT regarding an ERP system? - Answer- ERP
systems build upon traditional reports and output system to provide information on
financial performance
Total annual ORDER COST in the simple EOQ model is a function of the cost of placing
an order and: - Answer- the number of orders per year
Time utility depends on - Answer- Transportation companies delivering on time to
customers.
If there is demand variability and you place an order (re-order point) when the units at
hand equal average demand during lead time, you will - Answer-
Which of the following statements is incorrect? - Answer-
If an item is expensive and of critical importance to the firm, it should be managed using
a fixed order interval approach to inventory management. - Answer- False
If we compare forecasts errors (say, total absolute deviation) from two different
forecasts (FE1 from moving averages and FE2 from exponential smoothing), then which
of the following conclusions is CORRECT? - Answer- If FE1 = FE2, then we should
chose moving averages because it is simpler and requires less data and computation
power
How an organization receives an order, how it fills an order, and how it ships an order
affects all of the following, EXCEPT: - Answer-
Supply-demand misalignment is a big problem in supply chains, especially for new and
innovative products. Based on the chart below, which is INCORRECT? - Answer-
Channel partners under-order to meet avoid excess inventory
Which of the following represents the relationship between cost of lost sales and
inventory cost? - Answer- Option a
An example of electric lighting products company that faces very volatile demand was
discussed in class. The typical demand pattern for this company was: 10, 20, 15, 3000,
12, 18, 16, 10, 8, 4000, 6, 10, 2500 units per week. The peaks in demand came from
building contractors. This led to additional supply chain costs related to procurement,
manufacturing, and transportation. To overcome the problem, the company developed a
strategy of providing an incentive of 2% cash discount for contractors that placed their
order 4 weeks in advance and 5% cash discount to contractors that placed their orders
6 weeks in advance. This strategy is an example of: - Answer- Demand management
Which of the following components of Order Management is INCORRECTLY matched
with its description? - Answer-
, A logistics manager must consider other functions in the company such as production,
finance, and marketing while designing a logistics system. This might cause sub-
optimization of some logistics functions. This ensures optimality at___________. -
Answer- Organization level
Functional silos refers to: - Answer- Lack of coordination between departments.
Logistics costs (measured as a percentage of sales) would be of the LEAST concern to
a company which produces the following product(s): - Answer- Automobiles
Which statement is not true? - Answer- Changing to premium transportation modes
such as air will increase packaging costs due to more risk of damage.
Which reason for physical supply inventory involves purchases for hedging against
future price increases, strikes, changing political policies, delayed deliveries, rising or
falling interest rates, or currency fluctuations in world markets? - Answer-
anticipatory/speculative stocks
Logistics seek cost trade-offs. A "positive" cost trade-off is a situation where: - Answer-
Some costs increase, some decrease, and the net effect is that total costs decrease.
Which of the following is NOT correctly matched? - Answer-
Following is an example of: - Answer- Logistics Channel Analysis
Traditional measures of customer service are inward looking (focused on firm
performance) and new measures of customer service are outward facing (focused on
customer experience). Which of the following is a NEW measure? - Answer-
In the table above which rows are CORRECTLY matched for private versus public
distribution? - Answer- Rows 2, 3, 5, 7
What of the following is INCORRECT regarding transportation documentation? -
Answer- bill of lading is a freight document used to consolidate freight, coordinate
shipment deliveries, and take full advantage of container capacity
Which of the following statements from the chapter on sourcing is INCORRECT? -
Answer- The objective of the strategic procurement process is to purchase goods and
services at the "lowest" traditional purchase price.
All of the following are reasons why companies own their own private fleet, EXCEPT -
Answer- Low fixed cost
Which of the following is INCORRECT regarding an ERP system? - Answer- ERP
systems build upon traditional reports and output system to provide information on
financial performance
