GMS 401 Final Exam Practice Questions and Answers
Which of the following statements regarding A is false?
a. The company was opened by Jeff Bezos in 1995.
b. The company was founded as, and still is, a "virtual retailer"
with no inventory.
c. The company is now a world-class leader in warehous...
TORONTO METROPOLITAN UNIVERSITY
GMS 401 Final Exam Practice Questions and Answers
Which of the following statements regarding Amazon.com is false?
a. The company was opened by Jeff Bezos in 1995.
b. The company was founded as, and still is, a "virtual retailer"
with no inventory.
c. The company is now a world-class leader in warehouse
management and automation.
d. The company uses both United Parcel Service and the U.S.
Postal Service as shippers.
e. Amazon obtains its competitive advantage through inventory
management. - Answer✔️✔️-b. The company was founded as, and
still is, a "virtual retailer" with no inventory.
Which of the following is a function of inventory?
a. to decouple or separate parts of the production process
b. to decouple the firm from fluctuations in demand and provide a
stock of goods that will
TORONTO METROPOLITAN UNIVERSITY
d. it states that all items require the same degree of control
e. it states that there are the critical few and the trivial many
inventory items - Answer✔️✔️-d. it states that all items require the
same degree of control
ABC analysis is based upon the principle that
a. all items in inventory must be monitored very closely
b. there are usually a few critical items, and many items which are
less critical
c. an item is critical if its usage is high
d. more time should be spent on class "C" items because there are
more of them
e. an item is critical if its unit price is high - Answer✔️✔️-b. there are
usually a few critical items, and many items which are less critical
ABC analysis divides on-hand inventory into three classes,
generally based upon
a. item quality
b. unit price
c. the number of units on hand
d. annual demand
e. annual dollar volume - Answer✔️✔️-e. annual dollar volume
4
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