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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'

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 Marlon at Jul 04, 2024, 04:59 PM

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Dawne
11 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
11 months ago
Near instantaneous replenishment? I wish my local grocery store had that kind of efficiency!
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James
9 months ago
I wish my local grocery store had near instantaneous replenishment!
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Josphine
9 months ago
There is a fixed order quantity of 500 units.
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Erick
10 months ago
The order cycle is two and a half days.
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Vivan
10 months ago
I wish my local grocery store had near instantaneous replenishment!
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Aleta
10 months ago
There is a fixed order quantity of 500 units.
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Verdell
10 months ago
The order cycle is two and a half days.
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Lottie
10 months ago
Which of the following is TRUE
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Dulce
10 months ago
Which of the following is TRUE
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Rosio
11 months ago
I think Trinidad is correct, the time between orders is shown to be 2.5 days.
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Valentine
11 months ago
But look at the graph, the order quantity remains constant at 500 units.
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Trinidad
11 months ago
I disagree, I believe the answer is A) The order cycle is two and a half days.
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Casie
11 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
10 months ago
Karon: So, it must be option C) There is a fixed order quantity of 500 units.
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Marya
10 months ago
The graph shows a fixed order quantity of 500 units.
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Karon
10 months ago
I agree, it doesn't leave much room for flexibility.
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Nina
10 months ago
Yeah, 500 units does seem like a fixed order quantity.
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Valentine
11 months ago
I think the answer is C) There is a fixed order quantity of 500 units.
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Stephaine
11 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
11 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
10 months ago
B) The average inventory is 1,850 units.
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Cassandra
11 months ago
A) The order cycle is two and a half days.
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