ISM Exam INTE Topic 3 Question 2 Discussion

Actual exam question for ISM's Supply Management Integration exam

Question #: 2
Topic #: 3

[All Supply Management Integration Questions]

A graph of a firm's inventory replenishment system reveals the following:

Which of the following is TRUE'

AThe order cycle is two and a half days.

BThe average inventory is 1,850 units.

CThere is a fixed order quantity of 500 units.

DThere is near instantaneous replenishment.

Show Suggested Answer

Suggested Answer: D

The graph shows inventory levels being replenished back to the maximum level immediately after reaching zero, indicating near-instantaneous replenishment. This is characteristic of a system where the lead time for orders is very short or negligible, allowing the firm to maintain optimal inventory levels without significant delay. This approach minimizes stockouts and ensures a con-tinuous supply of inventory. Reference:

* Stevenson, W. J. (2018). Operations Management. McGraw-Hill Education.

* Silver, E. A., Pyke, D. F., & Thomas, D. J. (2016). Inventory and Production Management in Supply Chains. CRC Press.

by Marlon at Jul 04, 2024, 04:59 PM

Limited Time Offer

25%

Off

Get Premium INTE Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Dawne

3 months ago

Hold up, is this a graph or a work of modern art? I can't tell if I'm taking an exam or visiting a museum.

upvoted 0 times

...

Oretha

3 months ago

Near instantaneous replenishment? I wish my local grocery store had that kind of efficiency!

upvoted 0 times

James

1 months ago

I wish my local grocery store had near instantaneous replenishment!

upvoted 0 times

...

Josphine

2 months ago

There is a fixed order quantity of 500 units.

upvoted 0 times

...

Erick

2 months ago

User 1: The order cycle is two and a half days.

upvoted 0 times

...

Vivan

2 months ago

User 3: I wish my local grocery store had near instantaneous replenishment!

upvoted 0 times

...

Aleta

2 months ago

User 2: There is a fixed order quantity of 500 units.

upvoted 0 times

...

Verdell

2 months ago

User 1: The order cycle is two and a half days.

upvoted 0 times

...

Lottie

2 months ago

Which of the following is TRUE

upvoted 0 times

...

Dulce

3 months ago

Which of the following is TRUE

upvoted 0 times

...

Rosio

3 months ago

I think Trinidad is correct, the time between orders is shown to be 2.5 days.

upvoted 0 times

...

Valentine

3 months ago

But look at the graph, the order quantity remains constant at 500 units.

upvoted 0 times

...

Trinidad

3 months ago

I disagree, I believe the answer is A) The order cycle is two and a half days.

upvoted 0 times

...

Casie

3 months ago

500 units? That's a pretty fixed order quantity if you ask me. Seems a bit rigid, if you ask this guy.

upvoted 0 times

Georgene

2 months ago

Karon: So, it must be option C) There is a fixed order quantity of 500 units.

upvoted 0 times

...

Marya

2 months ago

User 3: The graph shows a fixed order quantity of 500 units.

upvoted 0 times

...

Karon

2 months ago

User 2: I agree, it doesn't leave much room for flexibility.

upvoted 0 times

...

Nina

3 months ago

User 1: Yeah, 500 units does seem like a fixed order quantity.

upvoted 0 times

...

Valentine

4 months ago

I think the answer is C) There is a fixed order quantity of 500 units.

upvoted 0 times

...

Stephaine

4 months ago

Hmm, 1,850 units for the average inventory? That's a lot of stuff to keep track of.

upvoted 0 times

...

Virgilio

4 months ago

The order cycle is clearly two and a half days according to the graph. Looks pretty straightforward to me.

upvoted 0 times

Lenita

3 months ago

B) The average inventory is 1,850 units.

upvoted 0 times

...

Cassandra

3 months ago

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

upvoted 0 times

...