SCM 300 Module 2 + Case
The items that are owned by a company for the purpose of present or future sale or for use in day-to-day
operations. Any items the company owns can be included as part of its:
a)Inventory
b)Lead time
c)Lot size
d)None of the above - correct answer ✔✔a)
Inventory is your insurance against risk at every stage of the supply chain. - correct answer ✔✔True
Stock of any ITEM or RESOURCE used in an organization is considered inventory - correct answer
✔✔True
Raw materials, replacement parts, matintenance, repair and operations are just some of the types of
inventory - correct answer ✔✔True
An accepted order size. Sometimes also refers to a possible order size increment:
a)Inventory
b)Lead time
c)Lot size
d)None of the above - correct answer ✔✔c)
The period of time between when an order is placed and when the order is received:
a)Inventory
b)Lead time
,c)Lot size
d)None of the above - correct answer ✔✔b)
Your company sells 200 units per week. Your supplier presently has a lead time of 4 weeks. What is the
minimum level of inventory required when you place an order?
a) 800 units
b)400 units
c)200 units
d)600 units - correct answer ✔✔a)
Your company sells 200 units per week. Your supplier presently has a lead time of 4 weeks. The minimum
level of inventory required when you place an order is 800 units. If you don't have 800 units when you
place an order, it is very likely that you WON'T run out of stock before the next order arrives - correct
answer ✔✔False
As your company decides between multiple suppliers, you should consider the value of having suppliers
with short lead times and flexible lot sizes - correct answer ✔✔True
If a company has too much inventory they risk higher holding cost, which would also include damage,
theft, and obsolescence - correct answer ✔✔True
Not carrying inventory also comes at a risk: the risk of not having inventory, the risk of not being able to
satisfy the needs of the customer. - correct answer ✔✔True
Theft or damage to inventory, late shipments from suppliers, employee sickness, employee strike, harsh
weather, machine malfunctions are examples of what type of risk?
a)Company risks
b)Supplier risks
c)Customer risks - correct answer ✔✔a)
,Employee sickness or strikes, a sudden increase in demand for your company's supplies are examples of
what type of risk?
a)Company risks
b)Supplier risks
c)Customer risks - correct answer ✔✔b)
A sudden increase in demand, damaged to customer's inventory are examples of what type of risk?
a)Company risks
b)Supplier risks
c)Customer risks - correct answer ✔✔c)
A predictive analysis and/or estimation of consumer demand in a future period
a) Demand forecasting
b)Independent demand item
c)Dependent demand item
d)None of the above - correct answer ✔✔a)
Future demand is always known - correct answer ✔✔False
Using historical data to predict future demand is an example of which type of Demand Forecasting
technique?
a)Quantitative
b)Qualitative
, c) Both a & b are correct
d) None of the above - correct answer ✔✔a)
Using queries of experts to predict future demand is an example of which type of Demand Forecasting
technique?
a)Quantitative
b)Qualitative
c) Both a & b are correct
d) None of the above - correct answer ✔✔b)
A specific product or service's identification code used to track inventory or catalog sales:
a)Raw materials
b)Stock Keeping Unit (SKU)
c)Finished Goods(FG)
d)Work-in0Process(WIP) - correct answer ✔✔b)
An item for which demand levels are not directly impacted by the demand of another related item:
a)Independent Demand Item
b)Dependent Demand Item - correct answer ✔✔a)
An item for which demand levels are not directly impacted by the demand of another related item
a)Independent Demand Item
b)Dependent Demand Item - correct answer ✔✔b)
A car is an example of an independent demand item - correct answer ✔✔True
The items that are owned by a company for the purpose of present or future sale or for use in day-to-day
operations. Any items the company owns can be included as part of its:
a)Inventory
b)Lead time
c)Lot size
d)None of the above - correct answer ✔✔a)
Inventory is your insurance against risk at every stage of the supply chain. - correct answer ✔✔True
Stock of any ITEM or RESOURCE used in an organization is considered inventory - correct answer
✔✔True
Raw materials, replacement parts, matintenance, repair and operations are just some of the types of
inventory - correct answer ✔✔True
An accepted order size. Sometimes also refers to a possible order size increment:
a)Inventory
b)Lead time
c)Lot size
d)None of the above - correct answer ✔✔c)
The period of time between when an order is placed and when the order is received:
a)Inventory
b)Lead time
,c)Lot size
d)None of the above - correct answer ✔✔b)
Your company sells 200 units per week. Your supplier presently has a lead time of 4 weeks. What is the
minimum level of inventory required when you place an order?
a) 800 units
b)400 units
c)200 units
d)600 units - correct answer ✔✔a)
Your company sells 200 units per week. Your supplier presently has a lead time of 4 weeks. The minimum
level of inventory required when you place an order is 800 units. If you don't have 800 units when you
place an order, it is very likely that you WON'T run out of stock before the next order arrives - correct
answer ✔✔False
As your company decides between multiple suppliers, you should consider the value of having suppliers
with short lead times and flexible lot sizes - correct answer ✔✔True
If a company has too much inventory they risk higher holding cost, which would also include damage,
theft, and obsolescence - correct answer ✔✔True
Not carrying inventory also comes at a risk: the risk of not having inventory, the risk of not being able to
satisfy the needs of the customer. - correct answer ✔✔True
Theft or damage to inventory, late shipments from suppliers, employee sickness, employee strike, harsh
weather, machine malfunctions are examples of what type of risk?
a)Company risks
b)Supplier risks
c)Customer risks - correct answer ✔✔a)
,Employee sickness or strikes, a sudden increase in demand for your company's supplies are examples of
what type of risk?
a)Company risks
b)Supplier risks
c)Customer risks - correct answer ✔✔b)
A sudden increase in demand, damaged to customer's inventory are examples of what type of risk?
a)Company risks
b)Supplier risks
c)Customer risks - correct answer ✔✔c)
A predictive analysis and/or estimation of consumer demand in a future period
a) Demand forecasting
b)Independent demand item
c)Dependent demand item
d)None of the above - correct answer ✔✔a)
Future demand is always known - correct answer ✔✔False
Using historical data to predict future demand is an example of which type of Demand Forecasting
technique?
a)Quantitative
b)Qualitative
, c) Both a & b are correct
d) None of the above - correct answer ✔✔a)
Using queries of experts to predict future demand is an example of which type of Demand Forecasting
technique?
a)Quantitative
b)Qualitative
c) Both a & b are correct
d) None of the above - correct answer ✔✔b)
A specific product or service's identification code used to track inventory or catalog sales:
a)Raw materials
b)Stock Keeping Unit (SKU)
c)Finished Goods(FG)
d)Work-in0Process(WIP) - correct answer ✔✔b)
An item for which demand levels are not directly impacted by the demand of another related item:
a)Independent Demand Item
b)Dependent Demand Item - correct answer ✔✔a)
An item for which demand levels are not directly impacted by the demand of another related item
a)Independent Demand Item
b)Dependent Demand Item - correct answer ✔✔b)
A car is an example of an independent demand item - correct answer ✔✔True
