TEST

$1$

An inventory model is a mathematical model to help manufacturers decide optimal frequency, quantity, and flow of orders and purchases Which statement correctly explains a common inventory model?

$1.$ A

An economic manufacturing quantity model combines inventory storage costs and fixed order costs to calculate the quantity to purchase.

$2.$ B

An independent demand system bases purchasing quantities on the cost of manufacturing the finished product.

$3.$ C

A dependent demand system bases purchasing quantities on the cost of the finished product's components.

$4.$ D

A quantity discount model assumes lower costs per unit when purchasing smaller quantities.

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$2$

In supply chain management, "lead time" refers to the time between what and what?

$1.$ A

Order placement and retail sales.

$2.$ B

Order placement and order delivery.

$3.$ C

Order placement and order production.

$4.$ D

Order production and order delivery.

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$3$

Which statement is a correct inventory tracking method explanation?

$1.$ A

In a tag system, merchandise is tagged when it arrives, with tags removed and destroyed at point of sale.

$2.$ B

Kanban is a system of cards that are uncovered to show when a shelf needs to be restocked or an inventory item needs to be reordered.

$3.$ C

Radio frequency identification $($RFID$)$ readers require human interaction to function.

$4.$ D

A stock book lists inventory items and deletes or crosses them out when the stock is depleted.

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$4$

Supply chain strategy that is aligned with the corporate business strategy strengthens the company's advantage over whom?

$1.$ A

The competition.

$2.$ B

Retail outlets.

$3.$ C

Other countries.

$4.$ D

Wholesalers.

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$5$

Supply chain strategy is the playbook for supporting which aspect of a company?

$1.$ A

Databases.

$2.$ B

Reputation.

$3.$ C

Pricing policy.

$4.$ D

Business strategy.

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$6$

To be in a position to weather economic ups and downs, the supplier needs to have at hand plenty of what?

$1.$ A

Customers.

$2.$ B

Cash.

$3.$ C

Employees.

$4.$ D

Capacity.

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$7$

The two primary kinds of financial statements are the income statement and the balance sheet. What does the balance sheet include?

$1.$ A

Product costs.

$2.$ B

Revenues.

$3.$ C

Administrative costs.

$4.$ D

Accounts payable.

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$8$

A useful strategy in supplier relationship management is making a chart showing goals such as cost$-$saving, increased profitability, better use of assets, lowering risk, and improving customer satisfaction. This will help identify areas where intervention may be necessary or beneficial. This strategy is called what?

$1.$ A

Value mapping.

$2.$ B

Spend optimization.

$3.$ C

Positive return on investment.

$4.$ D

Top$-$down approach.

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$9$

Which of these is a benefit of supply chain planning and execution?

$1.$ A

Reduced fulfillment demands.

$2.$ B

Reduced working capital requirements.

$3.$ C

Elimination of lost sales.

$4.$ D

Increased inventory requirements.

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$10$

Which demand forecasting model uses events in the present to predict future demand?

$1.$ A

Moving average model.

$2.$ B

Barometric model.

$3.$ C

Trend projection model.

$4.$ D

Econometric model.

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$11$

Two inventory control methods are identified as FIFO and LIFO. Which is a correct explanation of one of these methods?

$1.$ A

FIFO means first in$,$ first out. It presumes that older inventory will be sold first.

$2.$ B

LIFO means last in$,$ final out. It presumes that older inventory will be sold last.

$3.$ C

FIFO means freshest in$,$ final out. It presumes that newer inventory will be sold last.

$4.$ D

LIFO means longest in$,$ fastest out. It means that older inventory sells faster than newer inventory.

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$12$

In a world of scarce resources, companies have come to realize that irresponsible, unethical, or opportunistic behavior has become what?

$1.$ A

The new normal.

$2.$ B

Difficult to eliminate or control.

$3.$ C

Sometimes necessary in order to compete.

$4.$ D

A detriment to the company's reputation.

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$13$

Enterprise resource planning $($ERP$)$ systems are especially important in the $21$st century by enhancing engagement in what modern development?

$1.$ A

Economics.

$2.$ B

Globalization.

$3.$ C

Smartphones.

$4.$ D

Computer systems.

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$14$

As a supply chain manager, you are concerned that a broad variety of factors including changes in the labor market, economic shifts, extreme weather, natural disasters, or global crisis events can influence what?

$1.$ A

Your reputation.

$2.$ B

The stock market.

$3.$ C

Demand.