Given Business Requirements, Determine Principles to Support Applicable Inventory Model AGENTFORCE-FIELD-SERVICE-CONSULTANT Practice Questions (Page 6)

Questions 26–30

1. 26foundation · easy

   How does an increase in supplier lead time affect the reorder point in a continuous review inventory system?

   • AIt increases the reorder point
   • BIt has no effect on the reorder point
   • CIt only affects the safety stock, not the reorder point
   • DIt decreases the reorder point
   Reveal Solution Discussion Select an answer first
2. 27foundation · easy

   Which demand forecasting technique is most appropriate for a product with a consistent upward trend and no seasonal pattern?

   • ANaive forecast
   • BExponential smoothing with trend (e.g., Holt's method)
   • CSeasonal decomposition
   • DMoving average
   Reveal Solution Discussion Select an answer first
4. 28expert · hard

   A company operates two warehouses in different regions. Demand in each region is independent and has a standard deviation of 100 units per week. The company is considering consolidating the two warehouses into one central warehouse. What is the standard deviation of demand for the consolidated warehouse, assuming demand is independent?

   • A10,000 units
   • B141 units
   • C100 units
   • D200 units
   Reveal Solution Discussion Select an answer first
5. 29foundation · easy

   A company is selecting an inventory model for a product line. Which business requirement most directly influences the choice between a continuous review model and a periodic review model?

   • AThe desire to use a single supplier for all raw materials
   • BThe need to minimize the number of inventory counts performed each year
   • CThe criticality of avoiding stockouts for high-demand items
   • DThe pattern of customer demand and the cost of monitoring inventory levels
   Reveal Solution Discussion Select an answer first
6. 30foundation · easy

   When managing inventory across multiple locations, what is a key benefit of a decentralized inventory model?

   • AReduced need for demand forecasting
   • BFaster response times to local customers
   • CLower total inventory holding costs
   • DSimplified inventory management processes
   Reveal Solution Discussion Select an answer first