1. Which of the following is a method for increasing responsiveness in the supply chain?
a. Deploying inventories of parts or finished goods.
b. Investing in lead-time reduction.
c. Selecting suppliers for speed, flexibility, and quality rather than cost.
d. Developing modular designs to postpone product differentiation.
e. All of the above.
2. The objective of an inventory system is to determine the:
a. quantity of an item which should be ordered and when the items should be ordered.
b. quantity of an item which should be ordered to maximize the quantity discounts.
c. reorder point to ensure the optimal ordered quantity will be ordered.
d. safety stock required to meet the expected demand.
e. None of the above.
3. The basic Economic Order Quantity (EOQ) model answers which of the following questions?
a. When to order.
b. How much safety stock to carry.
c. What is the reorder point.
d. How much to order.
e. When to take advantage of quantity discount.
4. In the basic Economic Order Quantity (EOQ) model if the lead time changes from 1 week to 3 weeks:
a. the EOQ will triple.
b. there is no impact on the EOQ.
c. the EOQ will be reduced.
d. the holding costs will increase.
e. the ordering costs will increase.