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ISM Exam INTE Topic 3 Question 8 Discussion

Actual exam question for ISM's Supply Management Integration exam
Question #: 8
Topic #: 3
[All Supply Management Integration Questions]

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

Which of the following is TRUE'

Show Suggested Answer Hide 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 Dong at Jul 19, 2024, 01:15 AM

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Tijuana
2 months ago
What is this, a graph for ants? I can barely see the details. But I think option C is the way to go.
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Lashawn
2 months ago
Hmm, the average inventory of 1,850 units seems a bit high. I'm going to have to go with option B on this one.
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Verda
2 months ago
Based on the graph, it looks like there's a steady saw-tooth pattern, so I'd say option D, near instantaneous replenishment, is the correct answer here.
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Annmarie
1 months ago
Yes, option D makes sense based on the graph.
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Viola
1 months ago
I agree, the graph does show a steady pattern.
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Andree
2 months ago
The order cycle being two and a half days seems a bit short for a replenishment system. I'm going to go with option C - a fixed order quantity of 500 units.
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Samira
1 months ago
Yeah, having a fixed order quantity can help with managing inventory levels.
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Judy
1 months ago
I agree, that seems like a reasonable choice.
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Fausto
2 months ago
I think option C makes sense, a fixed order quantity of 500 units.
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Shelia
2 months ago
Hmm, I see your point. C does make sense now.
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Lili
2 months ago
I agree with Kanisha, C seems to be the correct answer based on the graph.
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Kanisha
2 months ago
But the graph shows a fixed order quantity, so it must be C.
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Shelia
2 months ago
I disagree, I believe the answer is D.
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Kanisha
3 months ago
I think the answer is C.
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