DEVRY GSCM520 WEEK 6 QUIZ

Question 1.1.(TCO 4) Which of the following is one of the categories of manufacturing inventory?(Points : 3)

Economic Order Inventory

Work-in-process

Quality units

JIT Inventory

Re-order point

Question 2.2.(TCO 4) When developing inventory cost models, which of the following are not included as costs to place an order?(Points : 3)

Phone calls

Taxes

Clerical

Calculating quantity to order

Postage

Question 3.3.(TCO 4) In making any decision that affects inventory size, which of the following costs do not need to be considered?(Points : 3)

Holding costs

Setup costs

Ordering costs

Fixed costs

Shortage costs

Question 4.4.(TCO 4) Which of the following are fixed-order quantity inventory models?(Points : 3)

Economic order quantity model

The ABC model

Periodic replenishment model

Cycle counting model

P model

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) If annual demand is 50,000 units, the ordering cost is $25 per order, and the holding cost is $5 per unit per year, which of the following is the optimal order quantity using the fixed-order quantity model?(Points : 3)

909

707

634

500

141

Question 7.7.(TCO 4) If the average aggregate inventory value is $100,000 and the cost of goods sold is $450,000, which of the following is inventory turnover?(Points : 3)

19.23

4.5

0.8654

0.2222

None of the above

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

Efficient

Forward looking

Agile

Risk hedging

Responsive

Question 9.9.(TCO 3) Which of the following is an organizationally driven reason for outsourcing?(Points : 3)

Improve effectiveness by focusing on what the firm does best

Turn fixed costs into variable costs

Reduce costs through lowered cost structure and increased flexibility

Improve risk management
Improve credibility and image by associating with superior providers

Question 10.10.(TCO 3) Which of the following is an improvement-driven reason for outsourcing?(Points : 3)

Shorten cycle time

Improve effectiveness by focusing on what the firm does best

Increase product and service value by improving response to customer needs
Turn fixed costs into variable costs

Reduce costs through a lower cost structure