OM 300 CONCEPT EXAM
QUESTIONS WITH 100% VERIFIED
ANSWERS
Which of the following is the purpose of a warehouse?
A. Consolidation point
B. Break-bulk point
C. Storage point
D. All of the above - Answer-All of the above
Which of the following remedies may reduce the bullwhip effect?
A. encourage order batching to reduce order frequency
B. allocate orders based on demand forecasts
C. offer periodic sales to stabilize demand
D. share demand information throughout the supply chain - Answer-share demand
information throughout the supply chain
The objective of inventory management is to
A. take advantage of quantity discounts.
B. decouple various parts of the production process.
C. provide a selection of goods for anticipated customer demand.
D. strike a balance between inventory investment and customer service. - Answer-strike
a balance between inventory investment and customer service.
Which of the following is NOT a type of inventory?
A. finished goods
B. raw material
C. MRP
D. work-in-process - Answer-MRP
Which of the following is NOT a function of inventory?
A. To leverage discounts for buying in bulk
B. To provide selection of goods for anticipated customer demand
C. To increase total invested capital
D. To minimize disruptions in the production process - Answer-To increase total
invested capital
When an inventory manager uses ABC analysis, which of the following will they
consider to be the most critical A item?
A. largest demand each year
B. highest dollar-volume each year
, C. highest cost per unit
D. largest storage space required - Answer-highest dollar-volume each year
Shrinkage is
A. The decrease in inventory levels resulting from cycle counting.
B. retail inventory that is unaccounted for between receipt and sale.
C. a small amount of inventory theft.
D. loss of liquid inventory. - Answer-retail inventory that is unaccounted for between
receipt and sale.
Which of the following should a company include as part of an item's holding cost?
A. investment costs, including taxes and insurance
B. ordering costs, including forms and order processing
C. labor costs, including purchasing and clerical support
D. process costs, including equipment setup - Answer-investment costs, including taxes
and insurance
What is the cost to prepare a machine or process for production?
A. setup cost
B. ordering cost
C. holding cost
D. preparation cost - Answer-setup cost
In manufacturing environments, setup cost is highly correlated with
A. holding cost.
B. independent demand.
C. setup time.
D. dependent demand. - Answer-setup time.
Extra units that are held in inventory to reduce stockouts are called
A. just-in-time inventory.
B. reorder point.
C. demand variance.
D. safety stock. - Answer-
What is a concept that results in material being produced only when requested and
moved to where it is needed just as it is needed?
A. requisition system
B. push system
C. pull system
D. procrastination system - Answer-pull system
What is NOT an advantage of changing from a push system to a pull system?
A. Lower cost
B. Enhanced customer satisfaction
C. Improved schedule performance
QUESTIONS WITH 100% VERIFIED
ANSWERS
Which of the following is the purpose of a warehouse?
A. Consolidation point
B. Break-bulk point
C. Storage point
D. All of the above - Answer-All of the above
Which of the following remedies may reduce the bullwhip effect?
A. encourage order batching to reduce order frequency
B. allocate orders based on demand forecasts
C. offer periodic sales to stabilize demand
D. share demand information throughout the supply chain - Answer-share demand
information throughout the supply chain
The objective of inventory management is to
A. take advantage of quantity discounts.
B. decouple various parts of the production process.
C. provide a selection of goods for anticipated customer demand.
D. strike a balance between inventory investment and customer service. - Answer-strike
a balance between inventory investment and customer service.
Which of the following is NOT a type of inventory?
A. finished goods
B. raw material
C. MRP
D. work-in-process - Answer-MRP
Which of the following is NOT a function of inventory?
A. To leverage discounts for buying in bulk
B. To provide selection of goods for anticipated customer demand
C. To increase total invested capital
D. To minimize disruptions in the production process - Answer-To increase total
invested capital
When an inventory manager uses ABC analysis, which of the following will they
consider to be the most critical A item?
A. largest demand each year
B. highest dollar-volume each year
, C. highest cost per unit
D. largest storage space required - Answer-highest dollar-volume each year
Shrinkage is
A. The decrease in inventory levels resulting from cycle counting.
B. retail inventory that is unaccounted for between receipt and sale.
C. a small amount of inventory theft.
D. loss of liquid inventory. - Answer-retail inventory that is unaccounted for between
receipt and sale.
Which of the following should a company include as part of an item's holding cost?
A. investment costs, including taxes and insurance
B. ordering costs, including forms and order processing
C. labor costs, including purchasing and clerical support
D. process costs, including equipment setup - Answer-investment costs, including taxes
and insurance
What is the cost to prepare a machine or process for production?
A. setup cost
B. ordering cost
C. holding cost
D. preparation cost - Answer-setup cost
In manufacturing environments, setup cost is highly correlated with
A. holding cost.
B. independent demand.
C. setup time.
D. dependent demand. - Answer-setup time.
Extra units that are held in inventory to reduce stockouts are called
A. just-in-time inventory.
B. reorder point.
C. demand variance.
D. safety stock. - Answer-
What is a concept that results in material being produced only when requested and
moved to where it is needed just as it is needed?
A. requisition system
B. push system
C. pull system
D. procrastination system - Answer-pull system
What is NOT an advantage of changing from a push system to a pull system?
A. Lower cost
B. Enhanced customer satisfaction
C. Improved schedule performance
