Response to the following MCQ'S:
Question 1. Firms keep supplies of inventory for which of the following reasons?
To maintain dependence of operations
To provide a feeling of security for the workforce
To meet variation in product demand
To hedge against wage increases
In case the supplier changes the design
Question 2. When material is ordered from a vendor, which of the following is not a reason for delays in the order arriving on time?
Normal variation in shipping time
A shortage of material at the vendor's plant causing backlogs
An unexpected strike at the vendor's plant
A lost order
Redundant ordering systems
Question 3. Which of the following is usually included as an inventory holding cost?
Order placing
Breakage
Typing up an order
Quantity discounts
Annualized cost of materials
Question 4. Which of the following is a perpetual system for inventory management?
Fixed-time period
Fixed-order quantity
P model
First-in-first-out
The wheel of inventory
Question 5. Which of the following is the set of all cost components that make up the fixed-order quantity total annual cost (TC) function?
Annual purchasing cost, annual ordering cost, fixed cost
Annual holding cost, annual ordering cost, unit cost
Annual holding cost, annual ordering cost, annual purchasing cost
Annual lead time cost, annual holding cost, annual purchasing cost
Annual unit cost, annual set up cost, annual purchasing cost
Question 6. The inventory turnover ratio used in measuring supply-chain efficiency is found by the ratio of which of the following?
Cost of goods sold/Average aggregate inventory value
Fixed costs/Variable costs
Sales costs/Marketing costs
Cost of goods sold/Cost to sell goods
Operations flow costs/Suppliers flow costs
Question 7. If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000, which of the following is weeks of supply?
1,040
606
104
60.6
2.0
Question 8. In Hau Lee's uncertainty framework to classify supply chains, a supply chain for innovative products with an evolving supply process is called which of the following?
Efficient
Forward looking
Agile
Risk hedging
Responsive
Question 9. The effect of the lack of synchronization among supply-chain members is referred to as which of the following?
Forward buying
Continuous replenishment
Bullwhip effect
Metcalf's Law
Being out of step
Question 10. Which of the following of Fisher's product categories includes fashionable clothing, personal computers, and other products that typically have a very brief life cycle?
Functional products
Dysfunctional products
Innovative products
Bullwhip products
Value density products