Given Business Requirements, Determine Principles to Support Applicable Inventory Model AGENTFORCE-FIELD-SERVICE-CONSULTANT Practice Questions (Page 5)

Questions 21–25

1. 21expert · hard

   A company is deciding on a target service level for a product. The cost of a stockout is $100 per unit, and the holding cost is $10 per unit per year. The demand during lead time is normally distributed with a mean of 100 units and a standard deviation of 20 units. What is the optimal service level that minimizes total cost?

   • A80%
   • B50%
   • C99.9%
   • D90.9%
   Reveal Solution Discussion Select an answer first
2. 22foundation · easy

   A company's supplier has become less reliable, with more frequent delays in delivery. What is the most appropriate adjustment to the inventory model to mitigate the risk of stockouts?

   • AReduce the reorder point
   • BIncrease the safety stock
   • CSwitch to a periodic review model without adjusting stock levels
   • DDecrease the safety stock
   Reveal Solution Discussion Select an answer first
4. 23foundation · easy

   Which inventory valuation method assumes that the most recently purchased items are sold first?

   • AFirst-In, First-Out (FIFO)
   • BSpecific Identification
   • CLast-In, First-Out (LIFO)
   • DWeighted Average Cost
   Reveal Solution Discussion Select an answer first
5. 24foundation · easy

   In ABC analysis, which category of items typically requires the most rigorous inventory control and frequent review?

   • AAll items equally
   • BA items
   • CB items
   • DC items
   Reveal Solution Discussion Select an answer first
6. 25application · medium

   A company has two suppliers for the same component. Supplier A has a lead time of 10 days with a standard deviation of 1 day. Supplier B has a lead time of 10 days with a standard deviation of 5 days. All other factors being equal, which supplier would require a lower safety stock to maintain the same service level?

   • ABoth suppliers require the same safety stock because the average lead time is the same.
   • BSupplier B, because higher variability allows for more flexible ordering.
   • CSupplier B, because a higher standard deviation means a lower average lead time.
   • DSupplier A, because lower lead-time variability reduces the safety stock needed.
   Reveal Solution Discussion Select an answer first