1-Cycle inventory exists because producing or purchasing in large lots allows a stage of the supply chain to...
A. exploit economies of scale and raise cost.
B. exploit economies of scale and lower cost.
C. exploit customers and lower cost.
D. exploit customers and raise cost.
E. None of the above.
2-What trade-offs do managers need to consider when making transportation decisions?
A. Transportation cost versus inventory cost.
B. Transportation cost versus customer responsiveness.
C. Inventory cost versus customer responsiveness.
D. All of the above.
E. A. and B. only.
3-The advantage of offering a price promotion during periods of low demand, to shift some of the demand into a slow period, is...
A. a demand pattern that is less expensive to supply.
B. very high inventory costs because inventory needs to be carried from period to period.
C. in the fact that a firm could get by with a smaller, more expensive factory.
D. much of the expensive capacity would go unused during most months when demand was lower.
E. All of the above.
4-Managers should ensure that a firm's transportation strategy...
A. involves cost minimization.
B. involves profit maximization.
C. supports its competitive strategy.
D. is separate from competitive strategy.
E. None of the above
5-To successfully use revenue management when serving multiple customer segments, a firm must use which of the following tactics effectively?
A. Price based on the value assigned by each segment.
B. Use different prices for each segment.
C. Forecast at the segment level.
D. All of the above.
E. A. and B. only.
6-Which approach to aggregation would stock the fast-moving items at decentralized locations close to the customer and slow-moving items at a centralized location?
A. Information centralization.
B. Specialization.
C. Product substitution.
D. Component commonality.
E. Postponement.
7-The fundamental trade-offs available to an aggregate planner to maximize profitability are between...
A. capability, inventory, and backlog costs.
B. capability, inventory, and sales costs.
C. capacity, inventory, and stockout costs.
D. capacity, inventory, and procurement costs.
E. None of the above.
8-A company that reduces replenishment lead time so that multiple orders may be placed in the selling season is making use of...
A. tailored sourcing.
B. quick response.
C. postponement.
D. improved forecasting.
E. decreased margin.
9-A contract - used to induce performance improvement from a supplier along dimensions, such as lead time, where the benefit of improvement accrues primarily to the buyer, and the effort for improvement comes primarily from the supplier is a...
A. buyback or returns contract.
B. revenue-sharing contract.
C. quantity flexibility contract.
D. quantity discount contract.
E. shared savings contract.
10-Which of the following would not be an example of a fixed ordering cost?
A. Administrative cost incurred to place an order.
B. Trucking cost incurred to transport an order.
C. Labor cost incurred to receive an order.
D. Labor cost incurred to manufacture a part.
E. None of the above.