1. Which one of the following descriptions best defines the cycle-service level as a measure of customer service?
a.The preferred proportion of annual demand instantaneously filled from stock.
b. The number of stockouts tolerated per year.
c. The preferred proportion of days in the year when an item is in stock.
d. The desired probability of not running out of stock in any one inventory cycle.
2. Which of the following is not related to quality management?
a. DMAIC.
b. EOQ.
c. DPMO.
d. ISO 9000.
4. Which of the following statements is most appropriate?
a. When we monitor a process which has already attained six-sigma quality, we must use z=6 for constructing all statistical process (SPC) charts such as p-charts.
b. When using SPC charts, type I error refers to the chance that our out-of-control conclusion is actually wrong.
c. We always need to minimize type I error such that it equals zero.
d. None of the above.
Provide an explanation on why the correct answer is the correct answer