Question 1

A graph of a firm’s inventory replenishment system reveals the followingWhich of the following is TRUE’

Options :

A : The order cycle is two and a half days.

B : The average inventory is 1,850 units.

C : There is a fixed order quantity of 500 units.

D : There is a fixed order quantity of 500 units.

Answer: D

Question 2

A company finds that tracking demand for products sold at its retail outlets makes forecasting a challenge. Which of the following would be MOST useful in providing rapid updates when dealing with suppliers?

Options :

A : Regression analysis of future sales

B : Safety stock review

C : Safety stock review

D : Probability modeling

Answer: C

Question 3

A firm needs to provide raw materials to accommodate a recent increase in manufacturing production. The supply manager uses the material forecast from the material requirements planning (MRP) software and the storage capacity from the warehouse management system (WMS) to forecast the firm's requirements. Which of the following will impact this forecast MOST significantly?

Options :

A : Validation of data by supply management

B : The type of planning system used

C : The interface between the MRP software and the WMS

D : Accounting for storage of works in progress

Answer: C

Question 4

A manufacturing firm's facility operates a level production strategy. The initial demand plan is as follows:MonthJanFebMarAprMayJunJulAugUnit Sales12,00026,00026,00021,00020,00020,00015,00020,000Production20,00020,00020,00020,00020,00020,00020,00020,000The supply management department learns that one of its retailers is planning a promotional event on August1st that it expects will require an additional 19,000 units. There are 5,000 units in stock for the beginning ofJanuary, and maximum inventory holding is 15,000 units. How many units per month should production increase in order to meet the requirements of its retailer andminimize overall inventory levels?

Options :

A : 2,000

B : 2,500

C : 14,000

D : 2,715

Answer: A

Question 5

XYZ, Inc. notices that one of its suppliers has been failing to achieve on-time delivery, even though XYZ sends it a 6-month projected order forecast every month. The supplier claims that it takes nine months to receive important raw materials, and that this causes the poor delivery performance. Nevertheless, XYZ must continue purchasing from this supplier, as it is a sole supplier. Given this situation, which of following is the BEST course of action for XYZ to take

Options :

A : Send the 6-month forecast data weekly instead of monthly to the supplier, and request it purchase raw materials based on the projections

B : Request that the supplier submit an open order report on a weekly basis with details on the latest shipment status

C : Discuss the issue with engineering to determine if the firm can use different raw materials to manufacture the product

D : Extend the forecast timeline from six months to one year, and request the supplier purchase raw materials based on the projections

Answer: D

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