100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
SCMA 331 Final Chapter 12 UPDATED Exam Questions and CORRECT Answers $9.99
Add to cart
Quickly navigate to
Preview
  2.  
  3. SCMA 331
  4.  
  5. SCMA 331

Exam (elaborations)

SCMA 331 Final Chapter 12 UPDATED Exam Questions and CORRECT Answers
 0 purchase
  • Course
  • SCMA 331
  • Institution
  • SCMA 331

SCMA 331 Final Chapter 12 UPDATED Exam Questions and CORRECT Answers According to the global company profile, A's advantage in inventory management comes from its almost fanatical use of economic order quantity and safety stock calculations. - CORRECT ANSWER- False A major challenge in inve...

[Show more]

Preview 4 out of 39  pages

Document information

  • September 15, 2024
  • 39
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

Written for

  • SCMA 331
  • SCMA 331

Seller

avatar-seller
MGRADES

Reviews received

Content preview

SCMA 331 Final Chapter 12 UPDATED
Exam Questions and CORRECT Answers
According to the global company profile, Amazon.com's advantage in inventory management
comes from its almost fanatical use of economic order quantity and safety stock calculations.
- CORRECT ANSWER- ✔✔False


A major challenge in inventory management is to maintain a balance between inventory
investment and customer service. - CORRECT ANSWER- ✔✔True


Which item to order and with which supplier the order should be placed are the two
fundamental issues in inventory management. - CORRECT ANSWER- ✔✔False


One function of inventory is to take advantage of quantity discounts. - CORRECT
ANSWER- ✔✔True


Work-in-process inventory is devoted to maintenance, repair, and operating materials. -
CORRECT ANSWER- ✔✔False


Which of the following statements regarding Amazon.com is FALSE?
A) The company was opened by Jeff Bezos in 1995.
B) The company was founded as, and still is, a "virtual" retailer with no inventory.
C) The company is now a world-class leader in warehouse automation and management.
D) The company uses both United Parcel Service and the U.S. Postal Service as shippers.
E) Amazon obtains its competitive advantage through inventory management. - CORRECT
ANSWER- ✔✔B


Which of the following is a function of inventory?
A) to decouple various parts of the production process
B) to provide a selection of goods for anticipated customer demand and to separate the firm
from fluctuations in that demand
C) to take advantage of quantity discounts
D) to hedge against inflation

,E) All of the above are functions of inventory - CORRECT ANSWER- ✔✔E


Which of the following would NOT generally be a motive for a firm to hold inventories?
A) to decouple various parts of the production process
B) to provide a selection of goods for anticipated customer demand and to separate the firm
from fluctuations in that demand
C) to take advantage of quantity discounts
D) to minimize holding costs

E) to hedge against inflation - CORRECT ANSWER- ✔✔D


Which of the following is NOT one of the four main types of inventory?
A) raw material inventory
B) work-in-process inventory
C) maintenance/repair/operating supply inventory
D) safety stock inventory

E) finished-goods inventory - CORRECT ANSWER- ✔✔D


Amazon's original concept of operating without inventory has given way to a model in which
Amazon is a world-class leader in ________. - CORRECT ANSWER- ✔✔warehouse
automation and management


Inventory that separates various parts of the production process performs a(n) ________
function. - CORRECT ANSWER- ✔✔decoupling


________ inventory is material that is usually purchased, but has yet to enter the
manufacturing process. - CORRECT ANSWER- ✔✔Raw material


Explain what "decoupling" means in the context of inventory management. - CORRECT
ANSWER- ✔✔Decoupling means to separate various parts of the production process. Each
of the parts can then function at its own best pace.

,What are the four functions of inventory? - CORRECT ANSWER- ✔✔(1) to provide a
selection of goods for anticipated customer demand and to separate the firm from fluctuations
in that demand; (2) to decouple various parts of the production process; (3) to take advantage
of quantity discounts; and (4) to hedge against inflation


Identify the four types of inventory. - CORRECT ANSWER- ✔✔(1) raw material inventory;
(2) work-in-process inventory; (3) maintenance/repair/operating supply (MRO) inventory;
and (4) finished-goods inventory


What is MRO an acronym for? What is the function of MRO inventories? - CORRECT
ANSWER- ✔✔MRO inventories are devoted to maintenance/repair/operating supplies. They
exist because the need and timing for maintenance and repair of some equipment are
unknown.


ABC analysis classifies inventoried items into three groups, usually based on annual units or
quantities used. - CORRECT ANSWER- ✔✔False



In ABC analysis, "A" items are the most tightly controlled. - CORRECT ANSWER- ✔✔True


ABC analysis is based on the presumption that carefully controlling all items is necessary to
produce important inventory savings. - CORRECT ANSWER- ✔✔False


Cycle counting is an inventory control technique exclusively used for cyclical items. -
CORRECT ANSWER- ✔✔False


One advantage of cycle counting is that it maintains accurate inventory records. - CORRECT
ANSWER- ✔✔True


In cycle counting, the frequency of item counting and stock verification usually varies from
item to item depending upon the item's classification. - CORRECT ANSWER- ✔✔True


Retail inventory that is unaccounted for between receipt and time of sale is known as
shrinkage. - CORRECT ANSWER- ✔✔True

, Which of the following statements about ABC analysis is FALSE?
A) ABC analysis is based on the presumption that controlling the few most important items
produces the vast majority of inventory savings.
B) In ABC analysis, "A" items should have tighter physical inventory control than "B" or "C"
items have.
C) In ABC analysis, forecasting methods for "C" items may be less sophisticated than for "A"
items.
D) ABC analysis is based on the presumption that all items must be tightly controlled to
produce important cost savings.
E) Criteria other than annual dollar volume, such as high holding cost or delivery problems,
can determine item classification in ABC analysis. - CORRECT ANSWER- ✔✔D


All EXCEPT which of the following statements about ABC analysis are true?
A) In ABC analysis, inventory may be categorized by measures other than dollar volume.
B) ABC analysis categorizes on-hand inventory into three groups based on annual dollar
volume.
C) ABC analysis is an application of the Pareto principle.
D) ABC analysis suggests that all items require the same high degree of control.
E) ABC analysis suggests that there are the critical few and the trivial many inventory items.
- CORRECT ANSWER- ✔✔D


ABC analysis is based upon the principle that:
A) all items in inventory must be monitored very closely.
B) there are usually a few critical items, and many items that are less critical.
C) an item is critical if its usage is high.
D) more time should be spent on class "C" items because there are many more of them.
E) as with grade distributions in many MBA courses, there should be more medium-level "B"
items than either "A" or "C" items. - CORRECT ANSWER- ✔✔B


ABC analysis divides on-hand inventory into three classes, generally based upon which of the
following?
A) item quality
B) unit price

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller MGRADES. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $9.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

64670 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling

Recently viewed by you

Exam (elaborations) ·

(1)

NSG 211 Exam 1 (Latest 2024 / 2025) Questions & Answers with rationales

Summary ·

(1)

Samenvatting anatomie, fysiologie, pathologie leerjaar 3 blok 2 verpleegkunde

Exam (elaborations) ·

(0)

CCNA ENSA MODULE 1 TO 2 EXAM QUESTIONS WITH CORRECT ANSWERS 100% 2024

Exam (elaborations) ·

(0)

Professional Home Inspector Exam NHIE / TREC #2 Questions and Answers Rated A

Exam (elaborations) ·

(0)

ROMEO AND JULIET ACT 1 TEST|UPDATED&VERIFIED|100% SOLVED|GUARANTEED SUCCESS

Exam (elaborations) ·

(0)

Culinary Arts 1 PROSTART LEVEL 1 Final Exam Questions and Answers Graded A+

Package deal ·

(0)

MBA - 706 Darrat (Exam 2024/2025 questions and answers)ALL BUNDLED HERE!!!

Exam (elaborations) ·

(0)

TCC PTLEA FDLE SOCE CPO Study Guide Questions and Answers Assured A+.

Exam (elaborations) ·

(0)

Tennessee National Portion REAL ESTATE EXAM 100% correct answers 2023
$9.99
  • (0)
Add to cart
Added