Final Round - Question 3

Which of the following is NOT a commonly cited

benefit of EDI implementation.

A. Improved order accuracy due to a reduction in manual processing

B. Increased speed of transmission of the order and other data

C. Increased paperwork

D. Improved information availability

5 points

Final Round - Answer 3

Which of the following is NOT a commonly cited

benefit of EDI implementation.

A. Improved order accuracy due to a reduction in manual processing

B. Increased speed of transmission of the order and other data

C. Increased paperwork

D. Improved information availability

5 points

Final Round - Question 4

All of the following are objectives of materials handling, except: A. move product in bulk form B. standardize handling methods C. make optimum use of building cube D. simplify handling by eliminating

unnecessary movements E. all of the above are materials handling

objectives

5 points

Final Round - Answer 4

All of the following are objectives of materials handling, except: A. move product in bulk form B. standardize handling methods C. make optimum use of building cube D. simplify handling by eliminating

unnecessary movements E. all of the above are materials

handling objectives

5 points

Final Round - Question 6

Assuming constant usage, an increase of 100 units

in the order quantity will cause:

A. an increase of 100 units in average inventoryB. a decrease in average inventory of 50 unitsC. an increase in average inventory of 50 unitsD. a decrease of 50 units in average inventoryE cannot be determined--not enough

information given

10 points

Final Round - Answer 6

Assuming constant usage, an increase of 100 units

in the order quantity will cause:

A. an increase of 100 units in average inventoryB. a decrease in average inventory of 50 unitsC. an increase in average inventory of 50

unitsD. a decrease of 50 units in average inventoryE. cannot be determined--not enough

information given10 points

Final Round - Question 10

Average cycle stock inventory equals:

A. Half the order quantity.

B. The square root of the order quantity.

C. The order quantity times the turns.

D. The order quantity level.

10 points

Final Round - Answser10

Average cycle stock inventory equals:

A. Half the order quantity.

B. The square root of the order quantity.

C. The order quantity times the turns.

D. The order quantity level.

10 points

Second Round - Question 4

Bar coding systems are useful in purchasing for which of the following activities? A. Receiving inbound materials and order generationB. Incoming inspection and quality controlC. Obtaining price quotes D. Determining availability of items from supplierE. Transmitting purchase orders

5 points

Second Round - Answer 4

Bar coding systems are useful in purchasing for which of the following activities? A. Receiving inbound materials and order generationB. Incoming inspection and quality controlC. Obtaining price quotes D. Determining availability of items from supplierE. Transmitting purchase orders

5 points

• 11. Which is an attempt to increase the velocity of inventory in the packaged goods industry throughout the supply chain of wholesalers, distributors, and ultimately to the customers?

a. ECRb. JITc. TQMd. EDI

• 12. The process of planning, implementing and controlling the efficient, cost‑effective flow and storage of raw materials, in‑process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customer requirements is the definition of logistics:

•  

a. From an inventory perspective.

b. Called the Seven Rs.

c. Offered by the Society of Logistics Engineers.

d. Provided by the Council of Logistics Management.

• 13. With what type of purchase would you need to identify all possible suppliers?

•  

a. a straight rebuy

b. a modified rebuy

c. a new buy

d. routine purchase

• 14. Inventory as a percent of GNP has generally been declining in recent years. Which factor is responsible?

•  a. Reduction and elimination of unnecessary

levels of inventoryb. Improved transportation servicec. Increases in inventory turnover ratesd. Improvements in communications and

information technologye. All of the above

• 15. The average inventory of XYZ Company is valued at $500,000. The annual carrying cost of carrying the inventory is 20 percent. Which is the annual cost of carrying inventory?

•  

a. $50,000

b. $100,000

c. $200,000

d. $500,000

• 16. Which of the following environmental conditions would be the most conducive to the adoption of a pull or reactive approach to inventory management?

•  a. When either order cycle time or demand

levels are uncertainb. When there are no capacity limitations at

market‑oriented warehouses or DCsc. When dependent demand existsd. When the overall logistics function evidences

a greater degree of sophistication

• 17. All are principle reasons for holding materials inventory, except:

•  

a. purchase economies

b. speculative investments in raw materials

c. transportation economies

d. improvement in customer service

• 18. Which reason for physical supply inventory involves purchases for hedging against future price increases, strikes, changing political policies, delayed deliveries, rising or falling interest rates, or currency fluctuations in world markets?

•  a. safety stockb. speculative purchasesc. seasonal supplyd. maintenance of supply sources

1. Product line expansion, rate increases, and high‑valued products are the mitigating factors that caused companies to manage what more efficiently? 

a. physical distributionb. integrated logistics managementc. inbound systemsd. inventory management ANSWER: a, p. 5

2. The inclusion of purchasing/procurement as part of the inbound logistics system added significantly to the opportunity to reduce costs. When did this begin? a. 1940s - 1950sb. 1960s - 1970sc. 1970s - 1980sd. 1980s - 1990s 

ANSWER: c, p. 6

7. Consumer demand for finished goods trigger the physical distribution function and increases production. Which logistics function next comes into play? a. marketingb. customer relationsc. materials managementd. receiving ANSWER: c, p. 72

8. The inbound system of logistics is frequently referred to as: a. physical distributionb. materials managementc. supply chain managementd. all of the above  ANSWER: b, p. 72

9. Which is not a reason for holding physical distribution inventories? a. maintenance of sources of supplyb. seasonality of demandc. production economiesd. transportation economies ANSWER a, p. 165

10. An inventory decision should consider safety stock when there is a chance of: a. turnoverb. over-orderingc. stockoutd. oversupply 

ANSWER c, p. 167

11. In the simple EOQ model, the reorder point is:a. the maximum amount needed for sales during the time it takes to replenish inventoryb. the minimum amount needed for sales during the time it takes to replenish inventoryc. the time necessary for a company to process an orderd. a concept required to minimize total inventory costs

ANSWER: b, p 202

What are the required inputs for an MRP?

• Production planning file, inventory status file, master production schedule

• Production planning file, master production schedule, bill of materials

• Master production schedule, bill of materials, customer order file

• Master production schedule, bill of materials, inventory status file

What are the required inputs for an MRP?

•

•

•

• Master production schedule, bill of materials, inventory status file

As customer service levels approach higher levels (80-

90%)), required inventory levels begin to _______at a(n)________ rate.

• Increase; increasing

• Increase; decreasing

• Decrease; decreasing

• Decrease; increasing

As customer service levels approach higher levels (80-

90%)), required inventory levels begin to _______at a(n)________ rate.

• Increase; increasing

•

•

•