GSC 3600 FINAL EXAM QUESTIONS AND ANSWERS
100% VERIFIED
The inventory that companies hold to protect themselves against uncertainties in either
demand or replenishment time is called - ANSWER Safety Stock
Individual links in the supply chain can stabilize their production at the most efficient level by
using - ANSWER Smoothing Inventory
Inventory that is "in the pipeline" moving from one link in the supply chain to another is: -
ANSWER Transportation Inventory
Tata Motors assembles cars from their own parts and subassemblies and also controls the
mining and fabrication of the materials used to create those parts. When Anand ordered his
luxury sedan with the platinum dashboard he knew he wouldn't be taking delivery of his
dream car the next week. Rather, he would be waiting a while thanks to: - ANSWER a
mismatch between supply chain lead time and customer demand.
Extra inventory that is held to protect against uncertainties in either demand or replenishment
time is called safety stock. - ANSWER True
The beef jerky driver shows up every Monday to take orders from his convenience store
customers. One fine Monday morning he stops in the Quik-E Mart and notes that there are
only three sticks on the shelves. Consulting his route sheet, he discovers that the restocking
, level is 40. The order quantity is therefore: - ANSWER 37 Sticks
A recently-divorced father checks the level of Boil and Serve macaroni and cheese in his
pantry the last day of every month. He uses an average of 20 boxes per month (his reorder
lead time) with a standard deviation of 5 boxes and wants to avoid the embarrassment and
deprivation of a stock out 99% of the time. Lead time is essentially zero since he can pick up a
box on the way home from work each day. What should his restocking level be? - ANSWER 32
A hospital's biomedical repair shop uses a 4-week periodic system to maintain the inventory
on the blood pressure cuff repair parts. They use an average 40 adult arm cuffs with a
standard deviation of 6 cuffs during their reorder leadtime. Cuffs aren't the most critical item
they carry, but the manager would like to avoid the embarrassment of a stockout at least 95%
(z = 1.65) of the time. What should their restocking level be? - ANSWER 50 Cuffs
The campus bookstore sells 4,000 sets of graduation regalia each year. Placing an order from
their supplier costs $25 regardless of order quantity, so they usually place a large order (a half
year's supply) at a time. It costs $5 per year to hold a cap and gown in inventory, primarily
insurance costs for the highly flammable material. What is their optimal order quantity
(calculate the EOQ)? - ANSWER 200
The campus bookstore sells 4,000 sets of graduation regalia each year. Placing an order from
their supplier costs $25 regardless of order quantity, so they usually place a large order (a half
year's supply) at a time. It costs $5 per year to hold a cap and gown in inventory, primarily
insurance costs for the highly flammable material. What is the total cost if they order at their
optimal order quantity? - ANSWER $1000
100% VERIFIED
The inventory that companies hold to protect themselves against uncertainties in either
demand or replenishment time is called - ANSWER Safety Stock
Individual links in the supply chain can stabilize their production at the most efficient level by
using - ANSWER Smoothing Inventory
Inventory that is "in the pipeline" moving from one link in the supply chain to another is: -
ANSWER Transportation Inventory
Tata Motors assembles cars from their own parts and subassemblies and also controls the
mining and fabrication of the materials used to create those parts. When Anand ordered his
luxury sedan with the platinum dashboard he knew he wouldn't be taking delivery of his
dream car the next week. Rather, he would be waiting a while thanks to: - ANSWER a
mismatch between supply chain lead time and customer demand.
Extra inventory that is held to protect against uncertainties in either demand or replenishment
time is called safety stock. - ANSWER True
The beef jerky driver shows up every Monday to take orders from his convenience store
customers. One fine Monday morning he stops in the Quik-E Mart and notes that there are
only three sticks on the shelves. Consulting his route sheet, he discovers that the restocking
, level is 40. The order quantity is therefore: - ANSWER 37 Sticks
A recently-divorced father checks the level of Boil and Serve macaroni and cheese in his
pantry the last day of every month. He uses an average of 20 boxes per month (his reorder
lead time) with a standard deviation of 5 boxes and wants to avoid the embarrassment and
deprivation of a stock out 99% of the time. Lead time is essentially zero since he can pick up a
box on the way home from work each day. What should his restocking level be? - ANSWER 32
A hospital's biomedical repair shop uses a 4-week periodic system to maintain the inventory
on the blood pressure cuff repair parts. They use an average 40 adult arm cuffs with a
standard deviation of 6 cuffs during their reorder leadtime. Cuffs aren't the most critical item
they carry, but the manager would like to avoid the embarrassment of a stockout at least 95%
(z = 1.65) of the time. What should their restocking level be? - ANSWER 50 Cuffs
The campus bookstore sells 4,000 sets of graduation regalia each year. Placing an order from
their supplier costs $25 regardless of order quantity, so they usually place a large order (a half
year's supply) at a time. It costs $5 per year to hold a cap and gown in inventory, primarily
insurance costs for the highly flammable material. What is their optimal order quantity
(calculate the EOQ)? - ANSWER 200
The campus bookstore sells 4,000 sets of graduation regalia each year. Placing an order from
their supplier costs $25 regardless of order quantity, so they usually place a large order (a half
year's supply) at a time. It costs $5 per year to hold a cap and gown in inventory, primarily
insurance costs for the highly flammable material. What is the total cost if they order at their
optimal order quantity? - ANSWER $1000
