MGSC 346 LATEST 2026 PRACTICE EXAMS QUESTIONS
AND SOLUTIONS GUARANTEE A+
✔✔What is the primary lever to reduce cycle inventory?
A. use flexible automation
B. reduce the lot sizes
C. improve demand forecasts
D. place orders closer to the time when they must be received - ✔✔B. reduce the lot
sizes
✔✔Lisa's Card Cache uses ABC analysis. Which of the following statements is NOT
true of ABC analysis?
A. ABC analysis uses the Pareto chart concept.
B. Inventory items are ranked on the basis of dollar usage.
C. Generally, the Class A items account for approximately 80 percent of the dollar
usage.
D. ABC analysis allows the company to control inventory shrinkage. - ✔✔D. ABC
analysis allows the company to control inventory shrinkage.
✔✔An individual item or product that has an identifying code and is held in inventory
somewhere along the supply chain is called a
A. stockable unit.
B. MRO.
C. inventory item.
D. stock-keeping unit. - ✔✔D. stock-keeping unit.
✔✔The production demand for widgets for a 250-workday year is 7,500 units. Ordering
costs are $25.00 per order and holding costs are $9.00 per unit per year. Four days
must be allowed between order placement and order receipt.
What is the EOQ, assuming known and constant variables?
A. 0.24
B. 73
C. 616
D. 204 - ✔✔D. 204
✔✔Which of the following is NOT a benefit of an MRP system?
A. Forecasting of finished-goods demand
B. Better utilization of labor and facilities
C. Improvement in customer service
D. Reduction of inventory levels - ✔✔A. Forecasting of finished-goods demand
, ✔✔The key inputs to an MRP include
A. inventory record database.
B. process chart.
C. engineering drawing of the product.
D. personnel records. - ✔✔A. inventory record database
✔✔✔✔Which of the following situations requires the use of simulation as a key
assumption of the multiple-server model is violated?
A. customers are served based on a priority discipline
B. all customers are patient
C. the mean service rate exceeds the mean arrival rate
D. the customer population is infinite - ✔✔customers are served based on a priority
discipline
✔✔By devising improved work methods, management is attempting to
A. increase the capacity of the system.
B. increase the efficiency of servers.
C. decrease the customer arrival rate.
D. increase server utilization. - ✔✔B. increase the efficiency of servers.
✔✔A _______ customer is one who enters the system and remains there until being
served.
A. focused
B. patient
C. transactional
D. normal priority - ✔✔B. patient
✔✔Which of the following elements are NOT common to waiting-line problems?
A. A random-number generator
B. A service facility
C. A priority rule
D. A waiting line of customers - ✔✔A. A random-number generator
✔✔Which of the following is a way that managers may attempt to affect the rate of
customer arrivals?
A. special promotions
B. differential pricing
C. advertising
AND SOLUTIONS GUARANTEE A+
✔✔What is the primary lever to reduce cycle inventory?
A. use flexible automation
B. reduce the lot sizes
C. improve demand forecasts
D. place orders closer to the time when they must be received - ✔✔B. reduce the lot
sizes
✔✔Lisa's Card Cache uses ABC analysis. Which of the following statements is NOT
true of ABC analysis?
A. ABC analysis uses the Pareto chart concept.
B. Inventory items are ranked on the basis of dollar usage.
C. Generally, the Class A items account for approximately 80 percent of the dollar
usage.
D. ABC analysis allows the company to control inventory shrinkage. - ✔✔D. ABC
analysis allows the company to control inventory shrinkage.
✔✔An individual item or product that has an identifying code and is held in inventory
somewhere along the supply chain is called a
A. stockable unit.
B. MRO.
C. inventory item.
D. stock-keeping unit. - ✔✔D. stock-keeping unit.
✔✔The production demand for widgets for a 250-workday year is 7,500 units. Ordering
costs are $25.00 per order and holding costs are $9.00 per unit per year. Four days
must be allowed between order placement and order receipt.
What is the EOQ, assuming known and constant variables?
A. 0.24
B. 73
C. 616
D. 204 - ✔✔D. 204
✔✔Which of the following is NOT a benefit of an MRP system?
A. Forecasting of finished-goods demand
B. Better utilization of labor and facilities
C. Improvement in customer service
D. Reduction of inventory levels - ✔✔A. Forecasting of finished-goods demand
, ✔✔The key inputs to an MRP include
A. inventory record database.
B. process chart.
C. engineering drawing of the product.
D. personnel records. - ✔✔A. inventory record database
✔✔✔✔Which of the following situations requires the use of simulation as a key
assumption of the multiple-server model is violated?
A. customers are served based on a priority discipline
B. all customers are patient
C. the mean service rate exceeds the mean arrival rate
D. the customer population is infinite - ✔✔customers are served based on a priority
discipline
✔✔By devising improved work methods, management is attempting to
A. increase the capacity of the system.
B. increase the efficiency of servers.
C. decrease the customer arrival rate.
D. increase server utilization. - ✔✔B. increase the efficiency of servers.
✔✔A _______ customer is one who enters the system and remains there until being
served.
A. focused
B. patient
C. transactional
D. normal priority - ✔✔B. patient
✔✔Which of the following elements are NOT common to waiting-line problems?
A. A random-number generator
B. A service facility
C. A priority rule
D. A waiting line of customers - ✔✔A. A random-number generator
✔✔Which of the following is a way that managers may attempt to affect the rate of
customer arrivals?
A. special promotions
B. differential pricing
C. advertising
