ISM Exam INTE Topic 3 Question 2 Discussion

Actual exam question for ISM's INTE exam

Question #: 2
Topic #: 3

[All INTE Questions]

A graph of a firm's inventory replenishment system reveals the following:

Which of the following is TRUE'

AThe order cycle is two and a half days.

BThe average inventory is 1,850 units.

CThere is a fixed order quantity of 500 units.

DThere is near instantaneous replenishment.

Show Suggested Answer

Suggested Answer: D

The graph shows inventory levels being replenished back to the maximum level immediately after reaching zero, indicating near-instantaneous replenishment. This is characteristic of a system where the lead time for orders is very short or negligible, allowing the firm to maintain optimal inventory levels without significant delay. This approach minimizes stockouts and ensures a con-tinuous supply of inventory. Reference:

* Stevenson, W. J. (2018). Operations Management. McGraw-Hill Education.

* Silver, E. A., Pyke, D. F., & Thomas, D. J. (2016). Inventory and Production Management in Supply Chains. CRC Press.

by Marlon at Jul 04, 2024, 04:59 PM

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Dawne

7 months ago

Hold up, is this a graph or a work of modern art? I can't tell if I'm taking an exam or visiting a museum.

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Oretha

7 months ago

Near instantaneous replenishment? I wish my local grocery store had that kind of efficiency!

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James

5 months ago

I wish my local grocery store had near instantaneous replenishment!

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Josphine

6 months ago

There is a fixed order quantity of 500 units.

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Erick

6 months ago

The order cycle is two and a half days.

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Vivan

6 months ago

I wish my local grocery store had near instantaneous replenishment!

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Aleta

7 months ago

There is a fixed order quantity of 500 units.

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Verdell

7 months ago

The order cycle is two and a half days.

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Lottie

7 months ago

Which of the following is TRUE

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Dulce

7 months ago

Which of the following is TRUE

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Rosio

7 months ago

I think Trinidad is correct, the time between orders is shown to be 2.5 days.

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Valentine

7 months ago

But look at the graph, the order quantity remains constant at 500 units.

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Trinidad

7 months ago

I disagree, I believe the answer is A) The order cycle is two and a half days.

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Casie

8 months ago

500 units? That's a pretty fixed order quantity if you ask me. Seems a bit rigid, if you ask this guy.

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Georgene

6 months ago

Karon: So, it must be option C) There is a fixed order quantity of 500 units.

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Marya

7 months ago

The graph shows a fixed order quantity of 500 units.

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Karon

7 months ago

I agree, it doesn't leave much room for flexibility.

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Nina

7 months ago

Yeah, 500 units does seem like a fixed order quantity.

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Valentine

8 months ago

I think the answer is C) There is a fixed order quantity of 500 units.

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Stephaine

8 months ago

Hmm, 1,850 units for the average inventory? That's a lot of stuff to keep track of.

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Virgilio

8 months ago

The order cycle is clearly two and a half days according to the graph. Looks pretty straightforward to me.

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Lenita

7 months ago

B) The average inventory is 1,850 units.

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Cassandra

7 months ago

A) The order cycle is two and a half days.

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