Lead time is way to measure the availability of inventory

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Reference no: EM131780533

1. Manufacturers usually carry work-in-process inventory. True or False ?

2. Companies belonging to the same industry segment should have the same inventory turns. True or False ?

3. The goal of inventory management is to have the right ______, in the right _______, at the right _______.

A. product, range, season

B. price, place, supplier

C. price, range, season

D. product, place, time

4. C&A has on average $6000 in inventory and its daily sales are $200. What are C&A’s weekly inventory turns (assuming demand occurs seven days a week)?

A. 85.7

B. 28.6

C. .23

D. 0.3

5. C&A sells two kinds of sandwiches: regular and deluxe. Each regular sandwich costs $1 to make and each deluxe sandwich costs $2 to make. On average, C&A has 5 regular and 10 deluxe sandwiches in inventory and 0.5 days-of-supply. How many sandwiches does C&A expect to sell each day?

A. 15

B. 30

C. 50

D. 100

6. A supply chain with a distributor has more product handling than one without a distributor. True or False?

7. Lead time is a way to measure the availability of inventory. True or False?

8. A supply chain for goods and services consists of a __________ of firms and locations that begins with __________ and ends with _________.

A. merging, public entities, private entities

B. merging, private entities, public entities

C. network, final users, raw materials

D. network, raw materials, final users

9. A supply chain that involves suppliers of raw materials in Germany, manufacturers in China, distributors in Spain, and retailers in the United States has ______ different levels or stages.

A. 5

B. 4

C. 3

D. 2

10. Company A provides corn to Company B to make into corn syrup. Company B sells its corn syrup to Company C, who makes ice cream for sale at Company D. Company A is a ___________ in the supply chain of ice cream.

A. tier 2 supplier

B. tier 1 supplier

C. manufacturer

D. retailer

11. As demand increases, the optimal economic order quantity increases at the same rate of demand. True or False?

12. A firm's ordering cost per year is independent of its order quantity decision. True or False?

13. The parameters of the economic order quantity (EOQ) model include all of the following except:

A. order quantity.

B. demand rate.

C. holding cost per unit per year.

D. ordering cost per order.

14. Company A sells 600 bottles of a dietary supplement per week at $100 per bottle. The supplement is ordered from a supplier who charges Company A $40 per order and $50 per bottle. Company A’s annual holding cost percentage is 30%. Assume Company A operates 50 weeks in a year. What is the economic order quantity?

A. 200

B. 400

C. 500

D. 800

15. Store A purchases cases of fertilizer for its lawn-care business from a supplier who charges Store A $30 per order and $50 per case. Each case consists of five bags of fertilizer. Store A needs 2000 bags of fertilizer a year. Store A’s annual holding costs are 30%. If Store A’s order quantity is 40 cases, what is its average inventory level?

A. 89

B. 45

C. 40

D. 20

16. A critical ratio of 0.8 means there is an 80% chance that demand is less than or equal to the optimal order quantity. True or False?

17. Expected profit is a direct measure of how well a company serves its customers. True or False?

18. Bakery A sells bread for $2 per loaf that costs $0.50 per loaf to make. Bakery A gives a 70% discount for its bread at the end of the day. What is the salvage value of its bread?

A. $2.00

B. $0.60

C. $0.50

D. $0.10

19. Demand is modeled with a normal distribution that has a mean of 300 and a standard deviation of 50. What is the probability that demand is 400 or less?

A. 97.7%

B. 95.4%

C. 47.7%

D. 2.3%

20. The difference between the __________ and _____________ is the mismatch costs in the newsvendor model.

A. maximum profit, expected profit

B. maximum profit, expected sales

C. minimum profit, expected profit

D. minimum profit, expected sales

Reference no: EM131780533

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