ISDS 3115 Final Exam LSU Borne
questions with correct answers
Which |of |these |conditions |is |not |necessary |for |the |economic |order |quantity |model |to |be |
valid? |- |CORRECT |ANSWER✔✔-The |item |has |a |constant |purchase |price.
A |disadvantage |of |the |fixed-period |inventory |system |is |that |- |CORRECT |ANSWER✔✔-a |
stockout |is |possible.
Cycle |counting |_________. |- |CORRECT |ANSWER✔✔-is |a |process |by |which |inventory |records |
are |verified |for |accuracy.
Which |of |the |following |should |be |higher |in |P |systems |than |Q |systems? |- |CORRECT |
ANSWER✔✔-Safety |stock
If |demand |is |not |uniform |and |constant, |the |stockout |risks |can |be |controlled |by |_______. |- |
CORRECT |ANSWER✔✔-adding |safety |stock
Inventory |management |policies |based |on |ABC |analysis |might |include |investing |___________. |-
|CORRECT |ANSWER✔✔-more |in |supplier |development |for |A |items
Extra |units |that |are |held |in |inventory |to |reduce |stockouts |are |called |__________. |- |CORRECT |
ANSWER✔✔-safety |stock
Generally, |inventory |types |are |divided |into |four |main |categories. |Which |of |the |following |is |not |
one |of |the |four |main |categories |of |inventory? |- |CORRECT |ANSWER✔✔-Safety |stock |inventory
A |production |facility |is |trying |to |determine |the |best |batch |size |for |an |item |that |is |produced |
intermittently. |This |item |has |an |annual |demand |of |1,000 |units, |an |annual |carrying |cost |of |$10 |
,per |unit, |and |a |setup |cost |of |$400. |They |operate |50 |weeks |per |year, |and |can |produce |40 |units
|per |week. |What |is |the |best |batch |size |for |this |item? |- |CORRECT |ANSWER✔✔-400
The |two |most |important |inventory-based |questions |answered |by |the |typical |inventory |model |
are |__________. |- |CORRECT |ANSWER✔✔-when |to |place |an |order |and |how |many |of |an |item |
to |order
One |use |of |inventory |is |_____________. |- |CORRECT |ANSWER✔✔-to |provide |a |hedge |against |
inflation
Inventory |record |accuracy |would |be |decreased |by |_________. |- |CORRECT |ANSWER✔✔-
increasing |stockroom |accessibility
In |the |probabilistic |model, |increasing |the |service |level |will |__________. |- |CORRECT |
ANSWER✔✔-increase |the |cost |of |the |inventory |policy
A |specific |product |has |expected |demand |during |lead |time |of |100 |units, |with |a |standard |
deviation |during |lead |time |of |25 |units. |What |safety |stock |(approximately) |provides |a |95% |
service |level? |- |CORRECT |ANSWER✔✔-41
A |store |wants |to |ensure |a |shelf |full |of |marshmallow |peeps |as |the |holiday |season |approaches. |
Daily |demand |for |peeps |is |normally |distributed |with |a |mean |of |25 |and |a |standard |deviation |of
|5. |Lead |time |is |3 |days |and |the |store |intends |a |98% |service |level. |What |is |the |appropriate |
reorder |point? |- |CORRECT |ANSWER✔✔-93
A |company |wishes |to |determine |the |EOQ |for |an |item |that |has |an |annual |demand |of |2,000 |
units, |a |cost |per |order |of |$75, |and |annual |carrying |cost |of |7.50 |per |unit. |What |is |the |EOQ? |- |
CORRECT |ANSWER✔✔-200
The |production |order |quantity |model |__________. |- |CORRECT |ANSWER✔✔-is |appropriate |
when |units |are |produced |and |sold |simultaneously
, The |appropriate |level |of |safety |stock |is |typically |determined |by |__________. |- |CORRECT |
ANSWER✔✔-choosing |the |level |of |safety |stock |that |assures |a |given |service |level
The |difference |between |the |basic |Economic |Order |Quantity |(EOQ) |model |and |the |production |
order |quantity |model |is |that |____________. |- |CORRECT |ANSWER✔✔-the |production |order |
quantity |model |does |not |require |the |assumption |of |instantaneous |delivery
An |inventory |decision |rule |states, |"When |the |inventory |level |goes |down |to |14 |gearboxes, |100 |
gearboxes |will |be |ordered." |Which |of |the |following |statements |is |TRUE?
A) |One |hundred |is |the |reorder |point, |and |14 |is |the |order |quantity.
B) |Fourteen |is |the |reorder |point, |and |100 |is |the |order |quantity.
C) |The |number |100 |is |a |function |of |demand |during |lead |time.
D) |Fourteen |is |the |safety |stock, |and |100 |is |the |reorder |point.
E) |None |of |the |above |is |true. |- |CORRECT |ANSWER✔✔-B) |Fourteen |is |the |reorder |point, |and |
100 |is |the |order |quantity.
A |system |that |keeps |track |of |each |withdrawal |or |addition |to |inventory |continuously |is |
_______________. |- |CORRECT |ANSWER✔✔-a |perpetual |inventory |system
A |system |that |triggers |ordering |on |a |uniform |time |basis |is |called |a |____________. |- |CORRECT |
ANSWER✔✔-fixed-period |system
The |primary |purpose |of |the |basic |economic |order |quantity |model |is |____________. |- |
CORRECT |ANSWER✔✔-to |minimize |the |sum |of |setup |cost |and |holding |cost
Most |inventory |models |attempt |to |minimize |_______________. |- |CORRECT |ANSWER✔✔-total |
inventory |based |costs
questions with correct answers
Which |of |these |conditions |is |not |necessary |for |the |economic |order |quantity |model |to |be |
valid? |- |CORRECT |ANSWER✔✔-The |item |has |a |constant |purchase |price.
A |disadvantage |of |the |fixed-period |inventory |system |is |that |- |CORRECT |ANSWER✔✔-a |
stockout |is |possible.
Cycle |counting |_________. |- |CORRECT |ANSWER✔✔-is |a |process |by |which |inventory |records |
are |verified |for |accuracy.
Which |of |the |following |should |be |higher |in |P |systems |than |Q |systems? |- |CORRECT |
ANSWER✔✔-Safety |stock
If |demand |is |not |uniform |and |constant, |the |stockout |risks |can |be |controlled |by |_______. |- |
CORRECT |ANSWER✔✔-adding |safety |stock
Inventory |management |policies |based |on |ABC |analysis |might |include |investing |___________. |-
|CORRECT |ANSWER✔✔-more |in |supplier |development |for |A |items
Extra |units |that |are |held |in |inventory |to |reduce |stockouts |are |called |__________. |- |CORRECT |
ANSWER✔✔-safety |stock
Generally, |inventory |types |are |divided |into |four |main |categories. |Which |of |the |following |is |not |
one |of |the |four |main |categories |of |inventory? |- |CORRECT |ANSWER✔✔-Safety |stock |inventory
A |production |facility |is |trying |to |determine |the |best |batch |size |for |an |item |that |is |produced |
intermittently. |This |item |has |an |annual |demand |of |1,000 |units, |an |annual |carrying |cost |of |$10 |
,per |unit, |and |a |setup |cost |of |$400. |They |operate |50 |weeks |per |year, |and |can |produce |40 |units
|per |week. |What |is |the |best |batch |size |for |this |item? |- |CORRECT |ANSWER✔✔-400
The |two |most |important |inventory-based |questions |answered |by |the |typical |inventory |model |
are |__________. |- |CORRECT |ANSWER✔✔-when |to |place |an |order |and |how |many |of |an |item |
to |order
One |use |of |inventory |is |_____________. |- |CORRECT |ANSWER✔✔-to |provide |a |hedge |against |
inflation
Inventory |record |accuracy |would |be |decreased |by |_________. |- |CORRECT |ANSWER✔✔-
increasing |stockroom |accessibility
In |the |probabilistic |model, |increasing |the |service |level |will |__________. |- |CORRECT |
ANSWER✔✔-increase |the |cost |of |the |inventory |policy
A |specific |product |has |expected |demand |during |lead |time |of |100 |units, |with |a |standard |
deviation |during |lead |time |of |25 |units. |What |safety |stock |(approximately) |provides |a |95% |
service |level? |- |CORRECT |ANSWER✔✔-41
A |store |wants |to |ensure |a |shelf |full |of |marshmallow |peeps |as |the |holiday |season |approaches. |
Daily |demand |for |peeps |is |normally |distributed |with |a |mean |of |25 |and |a |standard |deviation |of
|5. |Lead |time |is |3 |days |and |the |store |intends |a |98% |service |level. |What |is |the |appropriate |
reorder |point? |- |CORRECT |ANSWER✔✔-93
A |company |wishes |to |determine |the |EOQ |for |an |item |that |has |an |annual |demand |of |2,000 |
units, |a |cost |per |order |of |$75, |and |annual |carrying |cost |of |7.50 |per |unit. |What |is |the |EOQ? |- |
CORRECT |ANSWER✔✔-200
The |production |order |quantity |model |__________. |- |CORRECT |ANSWER✔✔-is |appropriate |
when |units |are |produced |and |sold |simultaneously
, The |appropriate |level |of |safety |stock |is |typically |determined |by |__________. |- |CORRECT |
ANSWER✔✔-choosing |the |level |of |safety |stock |that |assures |a |given |service |level
The |difference |between |the |basic |Economic |Order |Quantity |(EOQ) |model |and |the |production |
order |quantity |model |is |that |____________. |- |CORRECT |ANSWER✔✔-the |production |order |
quantity |model |does |not |require |the |assumption |of |instantaneous |delivery
An |inventory |decision |rule |states, |"When |the |inventory |level |goes |down |to |14 |gearboxes, |100 |
gearboxes |will |be |ordered." |Which |of |the |following |statements |is |TRUE?
A) |One |hundred |is |the |reorder |point, |and |14 |is |the |order |quantity.
B) |Fourteen |is |the |reorder |point, |and |100 |is |the |order |quantity.
C) |The |number |100 |is |a |function |of |demand |during |lead |time.
D) |Fourteen |is |the |safety |stock, |and |100 |is |the |reorder |point.
E) |None |of |the |above |is |true. |- |CORRECT |ANSWER✔✔-B) |Fourteen |is |the |reorder |point, |and |
100 |is |the |order |quantity.
A |system |that |keeps |track |of |each |withdrawal |or |addition |to |inventory |continuously |is |
_______________. |- |CORRECT |ANSWER✔✔-a |perpetual |inventory |system
A |system |that |triggers |ordering |on |a |uniform |time |basis |is |called |a |____________. |- |CORRECT |
ANSWER✔✔-fixed-period |system
The |primary |purpose |of |the |basic |economic |order |quantity |model |is |____________. |- |
CORRECT |ANSWER✔✔-to |minimize |the |sum |of |setup |cost |and |holding |cost
Most |inventory |models |attempt |to |minimize |_______________. |- |CORRECT |ANSWER✔✔-total |
inventory |based |costs
