Given Business Requirements, Determine Principles to Support Applicable Inventory Model AGENTFORCE-FIELD-SERVICE-CONSULTANT Practice Questions (Page 2)

Questions 6–10

1. 6foundation · easy

   What is the primary purpose of automated replenishment systems in inventory management?

   • ATo generate purchase orders automatically based on predefined rules
   • BTo calculate the financial value of inventory
   • CTo physically move inventory between warehouses
   • DTo forecast customer demand
   Reveal Solution Discussion Select an answer first
2. 7expert · hard

   A company sells two product lines. Product X has highly predictable, stable demand with a low profit margin. Product Y has highly volatile demand with a very high profit margin. The company has limited working capital and wants to minimize total inventory investment while avoiding stockouts on the most profitable line. Which inventory model principle is most appropriate?

   • AUse the same continuous review model with identical service levels for both products.
   • BUse a continuous review model with a high service level for Product Y and a simpler periodic review with lower service for Product X.
   • CUse a single economic order quantity (EOQ) for both products to simplify ordering.
   • DUse a periodic review model with a high service level for Product X and a lower service level for Product Y.
   Reveal Solution Discussion Select an answer first
4. 8foundation · easy

   How does real-time inventory tracking technology, such as barcode scanning or RFID, primarily support inventory management?

   • ABy eliminating the need for safety stock
   • BBy automatically placing orders without human intervention
   • CBy providing accurate, up-to-date inventory levels for better decision-making
   • DBy reducing the cost of goods sold
   Reveal Solution Discussion Select an answer first
5. 9application · medium

   A hospital supply chain manager is setting inventory parameters for a critical surgical item. The cost of a stockout is very high (delayed surgeries, patient risk), while the holding cost of the item is relatively low. The demand is stable. What should the manager prioritize when setting the reorder point and safety stock?

   • ASet the reorder point based on the economic order quantity (EOQ) alone.
   • BSet a high service level with generous safety stock to minimize the probability of stockout.
   • CSet the reorder point equal to the average demand during lead time with no safety stock.
   • DSet a low service level to minimize inventory holding costs.
   Reveal Solution Discussion Select an answer first
6. 10foundation · easy

   When determining which inventory model to use for a spare part that is expensive but has very sporadic demand, which business requirement should be the primary consideration?

   • AThe cost of holding the item in stock
   • BThe demand pattern for the item
   • CThe number of suppliers available for the item
   • DThe physical size of the item
   Reveal Solution Discussion Select an answer first