Practice Exam Concepts LSU ISDS 3115
KELLE FINAL EXAM QUESTIONS
WITH CORRECT ANSWERS
The |transfer |of |some |of |what |are |traditional |internal |activities |and |resources |of |a |firm |to |
outside |vendors |is: |- |CORRECT |ANSWER✔✔-outsourcing
True/False |Savings |in |the |supply |chain |exert |more |leverage |as |the |firm's |net |profit |margin |
decreases. |- |CORRECT |ANSWER✔✔-True
True/False:
The |supply |chain |management |opportunity |called |postponement |involves |delaying |deliveries |
to |avoid |accumulation |of |inventory |at |the |customer's |site. |- |CORRECT |ANSWER✔✔-False
Local |optimization |is |a |supply-chain |complication |best |described |as: |- |CORRECT |ANSWER✔✔-
optimizing |one's |local |area |without |full |knowledge |of |supply |chain |needs.
What |term |is |used |to |describe |the |outsourcing |of |logistics? |- |CORRECT |ANSWER✔✔-third-
party |logistics |(3PL)
Which |of |the |following |would |NOT |generally |be |a |motive |for |a |firm |to |hold |inventories?
A.
to |hedge |against |inflation
B.
to |take |advantage |of |quantity |discounts
C.
to |minimize |holding |costs
,D.
to |decouple |various |parts |of |the |production |process
E.
to |provide |a |selection |of |goods |for |anticipated |customer |demand |and |to |separate |the |firm |
from |fluctuations |in |that |demand |- |CORRECT |ANSWER✔✔-C. |to |minimize |holding |costs
Which |of |these |statements |about |the |production |order |quantity |model |is |FALSE?
A.
The |production |order |quantity |model |is |appropriate |when |the |assumptions |of |the |basic |EOQ |
model |are |met, |except |that |receipt |is |noninstantaneous.
B.
Because |receipt |is |noninstantaneous, |some |units |are |used |immediately |and |not |stored |in |
inventory.
C.
Average |inventory |is |more |than |one-half |of |the |production |order |quantity.
D.
All |else |equal, |the |smaller |the |ratio |of |demand |rate |to |production |rate, |the |smaller |is |the |
production |order |quantity.
E.
None |of |the |above |is |false. |- |CORRECT |ANSWER✔✔-C. |Average |inventory |is |more |than |one-
half |of |the |production |order |quantity.
The |proper |quantity |of |safety |stock |is |typically |determined |by: |- |CORRECT |ANSWER✔✔-setting
|the |level |of |safety |stock |so |that |a |given |stockout |risk |is |not |exceeded.
An |advantage |of |the |fixed-period |inventory |system |is |that: |- |CORRECT |ANSWER✔✔-there |is |no
|physical |count |of |inventory |items |when |an |item |is |withdrawn.
, In |MRP, |the |number |of |units |projected |to |be |available |at |the |beginning |of |each |time |period |
refers |to: |- |CORRECT |ANSWER✔✔-projected |on |hand
Which |of |the |following |lot-sizing |techniques |results |in |the |lowest |holding |costs? |- |CORRECT |
ANSWER✔✔-lot-for-lot
Enterprise |resource |planning |(ERP):
A.
does |not |integrate |well |with |functional |areas |other |than |operations.
B.
seldom |requires |software |upgrade |or |enhancement.
C.
is |inexpensive |to |implement.
D.
automates |and |integrates |the |majority |of |business |processes.
E.
all |of |the |above |- |CORRECT |ANSWER✔✔-D. |automates |and |integrates |the |majority |of |business
|processes
Which |of |the |following |statements |regarding |a |pull |system |is |TRUE?
A.
Problems |become |more |obvious.
B.
Work |is |pulled |to |the |downstream |stations |before |it |is |actually |needed.
KELLE FINAL EXAM QUESTIONS
WITH CORRECT ANSWERS
The |transfer |of |some |of |what |are |traditional |internal |activities |and |resources |of |a |firm |to |
outside |vendors |is: |- |CORRECT |ANSWER✔✔-outsourcing
True/False |Savings |in |the |supply |chain |exert |more |leverage |as |the |firm's |net |profit |margin |
decreases. |- |CORRECT |ANSWER✔✔-True
True/False:
The |supply |chain |management |opportunity |called |postponement |involves |delaying |deliveries |
to |avoid |accumulation |of |inventory |at |the |customer's |site. |- |CORRECT |ANSWER✔✔-False
Local |optimization |is |a |supply-chain |complication |best |described |as: |- |CORRECT |ANSWER✔✔-
optimizing |one's |local |area |without |full |knowledge |of |supply |chain |needs.
What |term |is |used |to |describe |the |outsourcing |of |logistics? |- |CORRECT |ANSWER✔✔-third-
party |logistics |(3PL)
Which |of |the |following |would |NOT |generally |be |a |motive |for |a |firm |to |hold |inventories?
A.
to |hedge |against |inflation
B.
to |take |advantage |of |quantity |discounts
C.
to |minimize |holding |costs
,D.
to |decouple |various |parts |of |the |production |process
E.
to |provide |a |selection |of |goods |for |anticipated |customer |demand |and |to |separate |the |firm |
from |fluctuations |in |that |demand |- |CORRECT |ANSWER✔✔-C. |to |minimize |holding |costs
Which |of |these |statements |about |the |production |order |quantity |model |is |FALSE?
A.
The |production |order |quantity |model |is |appropriate |when |the |assumptions |of |the |basic |EOQ |
model |are |met, |except |that |receipt |is |noninstantaneous.
B.
Because |receipt |is |noninstantaneous, |some |units |are |used |immediately |and |not |stored |in |
inventory.
C.
Average |inventory |is |more |than |one-half |of |the |production |order |quantity.
D.
All |else |equal, |the |smaller |the |ratio |of |demand |rate |to |production |rate, |the |smaller |is |the |
production |order |quantity.
E.
None |of |the |above |is |false. |- |CORRECT |ANSWER✔✔-C. |Average |inventory |is |more |than |one-
half |of |the |production |order |quantity.
The |proper |quantity |of |safety |stock |is |typically |determined |by: |- |CORRECT |ANSWER✔✔-setting
|the |level |of |safety |stock |so |that |a |given |stockout |risk |is |not |exceeded.
An |advantage |of |the |fixed-period |inventory |system |is |that: |- |CORRECT |ANSWER✔✔-there |is |no
|physical |count |of |inventory |items |when |an |item |is |withdrawn.
, In |MRP, |the |number |of |units |projected |to |be |available |at |the |beginning |of |each |time |period |
refers |to: |- |CORRECT |ANSWER✔✔-projected |on |hand
Which |of |the |following |lot-sizing |techniques |results |in |the |lowest |holding |costs? |- |CORRECT |
ANSWER✔✔-lot-for-lot
Enterprise |resource |planning |(ERP):
A.
does |not |integrate |well |with |functional |areas |other |than |operations.
B.
seldom |requires |software |upgrade |or |enhancement.
C.
is |inexpensive |to |implement.
D.
automates |and |integrates |the |majority |of |business |processes.
E.
all |of |the |above |- |CORRECT |ANSWER✔✔-D. |automates |and |integrates |the |majority |of |business
|processes
Which |of |the |following |statements |regarding |a |pull |system |is |TRUE?
A.
Problems |become |more |obvious.
B.
Work |is |pulled |to |the |downstream |stations |before |it |is |actually |needed.
