1. Final Round - Question 3
Which of the following is NOT a commonly cited
benefit of EDI implementation.
A. Improved order accuracy due to a reduction in manual processing
B. Increased speed of transmission of the order and other data
C. Increased paperwork
D. Improved information availability
5 points

2. Final Round - Answer 3 Which of the following is NOT a commonly cited
benefit of EDI implementation.
A. Improved order accuracy due to a reduction in manual processing
B. Increased speed of transmission of the order and other data
C. Increased paperwork
D. Improved information availability
5 points

3. Final Round - Question 4
All of the following are objectives of materials
handling, except:
A. move product in bulk form
B. standardize handling methods
C. make optimum use of building cube
D. simplify handling by eliminating unnecessary movements
E. all of the above are materials handling objectives
5 points

4. Final Round - Answer 4
All of the following are objectives of materials
handling, except:
A. move product in bulk form
B. standardize handling methods
C. make optimum use of building cube
D. simplify handling by eliminating unnecessary movements
E. all of the above are materials handling objectives
5 points

5. Final Round - Question 6
Assuming constant usage, an increase of 100 units
in the order quantity will cause:
A. an increase of 100 units in average inventory
B. a decrease in average inventory of 50 units
C. an increase in average inventory of 50 units
D. a decrease of 50 units in average inventory
E cannot be determined--not enough information given
10 points

6. Final Round - Answer 6
Assuming constant usage, an increase of 100 units
in the order quantity will cause:
A. an increase of 100 units in average inventory
B. a decrease in average inventory of 50 units
C. an increase in average inventory of 50 units
D. a decrease of 50 units in average inventory
E. cannot be determined--not enough information given
10 points

7. Final Round - Question 10 Average cycle stock inventory equals:
A. Half the order quantity.
B. The square root of the order quantity.
C. The order quantity times the turns.
D. The order quantity level.
10 points

8. Final Round - Answser10 Average cycle stock inventory equals:
A. Half the order quantity.
B. The square root of the order quantity.
C. The order quantity times the turns.
D. The order quantity level.
10 points

9. Second Round - Question 4
Bar coding systems are useful in purchasing for which of the following activities?
A. Receiving inbound materials and order generation
B. Incoming inspection and quality control
C. Obtaining price quotes
D. Determining availability of items from supplier
E. Transmitting purchase orders
5 points

10. Second Round - Answer 4
Bar coding systems are useful in purchasing for which of the following activities?
A. Receiving inbound materials and order generation
B. Incoming inspection and quality control
C. Obtaining price quotes
D. Determining availability of items from supplier
E. Transmitting purchase orders
5 points

11. 11. Which is an attempt to increase the velocity of inventory in the packaged goods industry throughout the supply chain of wholesalers, distributors, and ultimately to the customers?
ECR
JIT
TQM
EDI

12. 12. The process of planning, implementing and controlling the efficient, cost‑effective flow and storage of raw materials, in‑process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customer requirements is the definition of logistics:
From an inventory perspective.
Called the Seven Rs.
Offered by the Society of Logistics Engineers.
Provided by the Council of Logistics Management.

13. 13. With what type of purchase would you need to identify all possible suppliers?
a straight rebuy
a modified rebuy
a new buy
routine purchase

14. 14. Inventory as a percent of GNP has generally been declining in recent years. Which factor is responsible?
Reduction and elimination of unnecessary levels of inventory
Improved transportation service
Increases in inventory turnover rates
Improvements in communications and information technology
All of the above

15. 15. The average inventory of XYZ Company is valued at $500,000
15. The average inventory of XYZ Company is valued at $500,000. The annual carrying cost of carrying the inventory is 20 percent. Which is the annual cost of carrying inventory?
$50,000
$100,000
$200,000
$500,000

16. 16. Which of the following environmental conditions would be the most conducive to the adoption of a pull or reactive approach to inventory management?
When either order cycle time or demand levels are uncertain
When there are no capacity limitations at market‑oriented warehouses or DCs
When dependent demand exists
When the overall logistics function evidences a greater degree of sophistication

17. 17. All are principle reasons for holding materials inventory, except:
purchase economies
speculative investments in raw materials
transportation economies
improvement in customer service

18. 18. Which reason for physical supply inventory involves purchases for hedging against future price increases, strikes, changing political policies, delayed deliveries, rising or falling interest rates, or currency fluctuations in world markets?
safety stock
speculative purchases
seasonal supply
maintenance of supply sources

19. 1. Product line expansion, rate increases, and high‑valued products are the mitigating factors that caused companies to manage what more efficiently? 
a. physical distribution
b. integrated logistics management
c. inbound systems
inventory management
ANSWER: a, p. 5

20. 2. The inclusion of purchasing/procurement as part of the inbound logistics system added significantly to the opportunity to reduce costs. When did this begin?  a. 1940s s b. 1960s­ s c. 1970s s d. 1980s s  ANSWER: c, p. 6

21. 7. Consumer demand for finished goods trigger the physical distribution function and increases production. Which logistics function next comes into play?   a. marketing b. customer relations c. materials management d. receiving   ANSWER: c, p. 72

22. 8. The inbound system of logistics is frequently referred to as: a
8. The inbound system of logistics is frequently referred to as:   a. physical distribution b. materials management c. supply chain management d. all of the above     ANSWER: b, p. 72

23. 9. Which is not a reason for holding physical distribution inventories
9. Which is not a reason for holding physical distribution inventories?   a. maintenance of sources of supply b. seasonality of demand c. production economies d. transportation economies   ANSWER a, p. 165

24. 10. An inventory decision should consider safety stock when there is a chance of:   a. turnover b. over-ordering c. stockout d. oversupply   ANSWER c, p. 167

25. 11. In the simple EOQ model, the reorder point is: a
11. In the simple EOQ model, the reorder point is: a. the maximum amount needed for sales during the time it takes to replenish inventory b. the minimum amount needed for sales during the time it takes to replenish inventory c. the time necessary for a company to process an order d. a concept required to minimize total inventory costs ANSWER: b, p 202

26. What are the required inputs for an MRP?
Production planning file, inventory status file, master production schedule
Production planning file, master production schedule, bill of materials
Master production schedule, bill of materials, customer order file
Master production schedule, bill of materials, inventory status file

27. What are the required inputs for an MRP?
Master production schedule, bill of materials, inventory status file

28. As customer service levels approach higher levels (80-90%)), required inventory levels begin to _______at a(n)________ rate.
Increase; increasing
Increase; decreasing
Decrease; decreasing
Decrease; increasing

29. As customer service levels approach higher levels (80-90%)), required inventory levels begin to _______at a(n)________ rate.
Increase; increasing