GSCM520 Quiz Week 6 - Solved

Question 1.1. (TCO 4) Firms keep supplies of inventory for which of the following reasons? (Points : 3)

       To maintain dependence of operations

       To provide a feeling of security for the workforce

       To meet variation in product demand  

       To hedge against wage increases

       In case the supplier changes the design

Question 2.2. (TCO 4) When material is ordered from a vendor, which of the following is not a reason for delays in the order arriving on time? (Points : 3)

       Normal variation in shipping time

       A shortage of material at the vendor's plant causing backlogs

       An unexpected strike at the vendor's plant

       A lost order

       Redundant ordering systems    

Question 3.3. (TCO 4) Which of the following is usually included as an inventory holding cost? (Points : 3)

       Order placing

       Breakage

       Typing up an order

       Quantity discounts

       Annualized cost of materials

Question 4.4. (TCO 4) Which of the following is a perpetual system for inventory management? (Points : 3)

       Fixed-time period

       Fixed-order quantity

       P model

       First-in-first-out

       The wheel of inventory

Question 5.5. (TCO 4) Which of the following is the set of all cost components that make up the fixed-order quantity total annual cost (TC) function? (Points : 3)

       Annual purchasing cost, annual ordering cost, fixed cost

       Annual holding cost, annual ordering cost, unit cost

       Annual holding cost, annual ordering cost, annual purchasing cost

       Annual lead time cost, annual holding cost, annual purchasing cost

       Annual unit cost, annual set up cost, annual purchasing cost

Question 6.6. (TCO 4) The inventory turnover ratio used in measuring supply-chain efficiency is found by the ratio of which of the following? (Points : 3)

       Cost of goods sold/Average aggregate inventory value

       Fixed costs/Variable costs

       Sales costs/Marketing costs

       Cost of goods sold/Cost to sell goods

       Operations flow costs/Suppliers flow costs

Question 7.7. (TCO 4) If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000, which of the following is weeks of supply? (Points : 3)

       1,040

       606

       104

       60.6

       2.0

Question 8.8. (TCO 3) In Hau Lee's uncertainty framework to classify supply chains, a supply chain for innovative products with an evolving supply process is called which of the following? (Points : 3)

       Efficient

       Forward looking

       Agile

       Risk hedging

       Responsive

Question 9.9. (TCO 3) The effect of the lack of synchronization among supply-chain members is referred to as which of the following? (Points : 3)

       Forward buying

       Continuous replenishment

       Bullwhip effect

       Metcalf's Law

       Being out of step

Question 10.10. (TCO 3) Which of the following of Fisher's product categories includes fashionable clothing, personal computers, and other products that typically have a very brief life cycle? (Points : 3)

       Functional products

       Dysfunctional products

       Innovative products

       Bullwhip products

       Value density products