OM 300 EXAM 3 QUESTIONS
WITH CORRECT ANSWERS
(GRADED A+)
Ethics in Supply Chains - Answer-Honest sourcing, environmental responsibility, and
fair supplier treatment.
Reverse Logistics - Answer-Returning products for resale, reuse, or recycling.
Closed-Loop SCM - Answer-Designs both forward and reverse flows for reuse and
sustainability.
Benchmarking the Supply Chain - Answer-Comparing key metrics (SCOR model) to
industry best performance.
Inventory Turnover - Answer-= Cost of Goods Sold / Average Inventory; measures how
efficiently inventory is used.
Objective of Inventory Management - Answer-Balance investment in inventory with
desired customer service level.
Functions of Inventory - Answer-Meet demand, decouple processes, gain quantity
discounts, hedge against inflation.
Types of Inventory - Answer-Raw materials, Work-in-process (WIP),
Maintenance/Repair/Operating (MRO), Finished goods.
A-B-C Analysis - Answer-Classifies items by annual dollar volume (A = high, B =
medium, C = low) to focus control where it matters most.
Cycle Counting - Answer-Regular, periodic counting of selected inventory to maintain
accurate records.
Inventory Costs - Answer-Holding (cost to store), Ordering (cost to place orders), Setup
(cost to prepare equipment).
Holding Cost (H) - Answer-Cost per unit per year to carry inventory (storage, insurance,
obsolescence).
Ordering/Setup Cost (S) - Answer-Cost per order or production setup.
WITH CORRECT ANSWERS
(GRADED A+)
Ethics in Supply Chains - Answer-Honest sourcing, environmental responsibility, and
fair supplier treatment.
Reverse Logistics - Answer-Returning products for resale, reuse, or recycling.
Closed-Loop SCM - Answer-Designs both forward and reverse flows for reuse and
sustainability.
Benchmarking the Supply Chain - Answer-Comparing key metrics (SCOR model) to
industry best performance.
Inventory Turnover - Answer-= Cost of Goods Sold / Average Inventory; measures how
efficiently inventory is used.
Objective of Inventory Management - Answer-Balance investment in inventory with
desired customer service level.
Functions of Inventory - Answer-Meet demand, decouple processes, gain quantity
discounts, hedge against inflation.
Types of Inventory - Answer-Raw materials, Work-in-process (WIP),
Maintenance/Repair/Operating (MRO), Finished goods.
A-B-C Analysis - Answer-Classifies items by annual dollar volume (A = high, B =
medium, C = low) to focus control where it matters most.
Cycle Counting - Answer-Regular, periodic counting of selected inventory to maintain
accurate records.
Inventory Costs - Answer-Holding (cost to store), Ordering (cost to place orders), Setup
(cost to prepare equipment).
Holding Cost (H) - Answer-Cost per unit per year to carry inventory (storage, insurance,
obsolescence).
Ordering/Setup Cost (S) - Answer-Cost per order or production setup.
