Given Business Requirements, Determine Principles to Support Applicable Inventory Model AGENTFORCE-FIELD-SERVICE-CONSULTANT Practice Questions (Page 7)

Questions 31–35

1. 31foundation · easy

   A company is considering reducing its safety stock to lower inventory costs. What is the most likely consequence of this action?

   • AA decrease in stockout frequency
   • BNo change in stockout frequency
   • CAn increase in stockout frequency
   • DAn increase in customer service levels
   Reveal Solution Discussion Select an answer first
2. 32foundation · easy

   What is a primary advantage of centralizing inventory in a single location?

   • AReduced shipping costs to customers
   • BFaster response times to local customers
   • CHigher inventory holding costs
   • DLower total safety stock requirements
   Reveal Solution Discussion Select an answer first
4. 33foundation · easy

   What is the primary purpose of safety stock in an inventory replenishment system?

   • ATo reduce the total inventory holding cost
   • BTo reduce the cost of placing orders
   • CTo increase the reorder point
   • DTo protect against variability in demand and lead time
   Reveal Solution Discussion Select an answer first
5. 34application · medium

   A manufacturer sources a key component from a single overseas supplier. The supplier's lead time has historically been 30 days, but recent geopolitical issues have made the lead time unpredictable, ranging from 20 to 60 days. Demand is relatively stable. What is the most important adjustment to the inventory model?

   • AReduce the reorder point to order later and avoid holding excess stock.
   • BIncrease safety stock to cover the extended and variable lead time.
   • CKeep the current model unchanged because demand is stable.
   • DSwitch to a periodic review system with a shorter review interval.
   Reveal Solution Discussion Select an answer first
6. 35application · medium

   A pharmaceutical distributor must comply with regulations requiring full traceability of each batch of medication from manufacturer to patient. The distributor is selecting an inventory model. Which principle is most critical to incorporate?

   • AImplement lot-level tracking with unique identifiers for each batch.
   • BUse a weighted average cost method for all inventory valuation.
   • CMinimize safety stock to reduce the amount of inventory that must be tracked.
   • DCentralize all inventory into a single location to simplify tracking.
   Reveal Solution Discussion Select an answer first