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 - Answer- a)
Inventory is your insurance against risk at every stage of the supply chain. - Answer-
True
Stock of any ITEM or RESOURCE used in an organization is considered inventory -
Answer- True
Raw materials, replacement parts, matintenance, repair and operations are just
some of the types of inventory - 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 - 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 - 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 - 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 - 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 - Answer- True
If a company has too much inventory they risk higher holding cost, which would also
include damage, theft, and obsolescence - 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. - 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 - 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 - 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 - 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 - Answer- a)
Future demand is always known - 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 - 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 - 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) - 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 - 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 - Answer- b)
A car is an example of an independent demand item - Answer- True
A tire is a dependent demand item - Answer- True
All of these are examples of independent demand items EXCEPT:
a) Computer
b) Tires
c)Refrigerators
d)Dining tables - Answer- b)
Materials, parts, or components that will be used to create an end item or service:
a)Raw materials
b)Work-in-Process(WIP)
c)Finished Goods(FG)
d)Maintenance, Repair, and Operations(MRO) - Answer- a)
Unassembled handles, shafts, and shovel blades are all examples of:
a)Raw materials
b)Work-in-Process(WIP)
c)Finished Goods(FG)
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 - Answer- a)
Inventory is your insurance against risk at every stage of the supply chain. - Answer-
True
Stock of any ITEM or RESOURCE used in an organization is considered inventory -
Answer- True
Raw materials, replacement parts, matintenance, repair and operations are just
some of the types of inventory - 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 - 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 - 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 - 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 - 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 - Answer- True
If a company has too much inventory they risk higher holding cost, which would also
include damage, theft, and obsolescence - 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. - 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 - 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 - 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 - 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 - Answer- a)
Future demand is always known - 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 - 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 - 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) - 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 - 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 - Answer- b)
A car is an example of an independent demand item - Answer- True
A tire is a dependent demand item - Answer- True
All of these are examples of independent demand items EXCEPT:
a) Computer
b) Tires
c)Refrigerators
d)Dining tables - Answer- b)
Materials, parts, or components that will be used to create an end item or service:
a)Raw materials
b)Work-in-Process(WIP)
c)Finished Goods(FG)
d)Maintenance, Repair, and Operations(MRO) - Answer- a)
Unassembled handles, shafts, and shovel blades are all examples of:
a)Raw materials
b)Work-in-Process(WIP)
c)Finished Goods(FG)
