Given Business Requirements, Determine Principles to Support Applicable Inventory Model AGENTFORCE-FIELD-SERVICE-CONSULTANT Practice Questions (Page 3)

Questions 11–15

1. 11foundation · easy

   A food manufacturer must be able to trace a batch of ingredients from the supplier to the finished product. Which inventory principle is most directly impacted by this compliance requirement?

   • ASafety stock calculation
   • BLot tracking and traceability
   • CEconomic order quantity (EOQ)
   • DABC classification
   Reveal Solution Discussion Select an answer first
2. 12application · medium

   A medical device distributor stocks 12,000 SKUs. A small group of high-value implantable devices accounts for 78% of annual revenue, while thousands of low-cost consumables (bandages, gloves) account for the rest. The company's service-level target is 99% for implants and 90% for consumables. The inventory manager wants to apply different replenishment principles to each group. Which approach best aligns inventory control principles with these business requirements?

   • AUse ABC analysis to classify items, then apply tight cycle-counting and higher safety stock for A-class implants, and simpler reorder-point rules for C-class consumables.
   • BApply a uniform reorder-point model with the same safety stock for all 12,000 SKUs to simplify system administration.
   • CClassify items by physical size rather than value, and allocate warehouse space proportionally to each category.
   • DSet a single 99% service level for all items and use periodic review for everything, since higher service always justifies higher inventory.
   Reveal Solution Discussion Select an answer first
4. 13foundation · easy

   A retailer wants to forecast demand for a seasonal product, such as winter coats. Which forecasting technique is most suitable?

   • ASeasonal decomposition (e.g., seasonal indices)
   • BSimple exponential smoothing
   • CMoving average
   • DLinear regression on time
   Reveal Solution Discussion Select an answer first
5. 14application · medium

   A company has performed an ABC analysis and found that A-class items are high-value, high-usage products. Which of the following inventory control principles is most appropriate for A-class items?

   • AUse a two-bin system with minimal tracking.
   • BUse a manual reorder point system with monthly counts.
   • CUse a continuous review system with frequent cycle counts and tight safety stock control.
   • DUse a periodic review system with a long review interval to reduce administrative effort.
   Reveal Solution Discussion Select an answer first
6. 15foundation · easy

   Which regulatory requirement is most likely to influence the inventory model for a pharmaceutical company?

   • AMinimum wage laws for warehouse staff
   • BAdvertising standards for consumer products
   • CExpiration date management and lot traceability
   • DData privacy regulations for customer information
   Reveal Solution Discussion Select an answer first