Question 1

If demand is not uniform and constant, then stockout risks can be controlled by:

Accepted Answer

A)  increasing the EOQ. 
B)  spreading annual demand over more frequent, but smaller, orders. 
C)  raising the selling price to reduce demand. 
D)  adding safety stock. 
E)  reducing the reorder point. 
A)  increasing the EOQ. 
B)  spreading annual demand over more frequent, but smaller, orders. 
C)  raising the selling price to reduce demand. 
D)  adding safety stock. 
E)  reducing the reorder point.

Question 2

A container of ball-bearings valued at $250,000, currently located in Houston, TX, needs to be delivered to the Morton, IL, plant. The standard shipment method takes four days. However, for an additional charge of $500, the container can be sent overnight to arrive one day later. The annual holding cost rate for this type of item has been estimated at 25%. Which option is more economical?

Accepted Answer

Daily cost of holding the item is .25(25

Question 3

What is cycle counting?

Accepted Answer

Cycle counting is a

Question 4

A company is about to select a vendor for the outsourcing of all of its engineering, environmental, and CAD requirements. It has identified four criteria critical to the selection. These criteria, and their importance weights, appear below. Three firms, A, C, and E, have indicated that they are interested in this position. The company has scored each of the three candidates on these criteria, using a 1-10 scale, where 10 is best. Candidate A scored 7, 7, 5, and 7, respectively, on the four criteria. Candidate C scored 9, 4, 9, and 6. Candidate E scored 5, 10, 9, and 7. Which vendor has the highest composite score?

Accepted Answer

@#IMG-DLM& Company C has the h

Question 5

A certain type of computer costs $10 per unit, and the annual holding cost is 25% of the value of the item. Annual demand is 1,000 units, and the order cost is $150 per order. What is the approximate economic order quantity?

Accepted Answer

A)  120,000 
B)  866 
C)  110 
D)  1095 
E)  346 
A)  120,000 
B)  866 
C)  110 
D)  1095 
E)  346

Question 6

In a quantity discount problem, if the savings in annual product cost is smaller than the increase in the sum of annual setup cost and annual holding cost, the discount should be ________.

Accepted Answer

The answer of In a quantity discount problem, if the...

Question 7

Which of these statements about the production order quantity model is FALSE?

Accepted Answer

A)  The production order quantity model is appropriate when the assumptions of the basic EOQ model are met, except that receipt is noninstantaneous. 
B)  Because receipt is noninstantaneous, some units are used immediately and not stored in inventory. 
C)  Average inventory is more than one-half of the production order quantity. 
D)  All else equal, the smaller the ratio of demand rate to production rate, the smaller is the production order quantity. 
E)  None of these is false. 
A)  The production order quantity model is appropriate when the assumptions of the basic EOQ model are met, except that receipt is noninstantaneous. 
B)  Because receipt is noninstantaneous, some units are used immediately and not stored in inventory. 
C)  Average inventory is more than one-half of the production order quantity. 
D)  All else equal, the smaller the ratio of demand rate to production rate, the smaller is the production order quantity. 
E)  None of these is false.

Question 8

A grocery store is trying to find a new supplier for carrots. Its three most important supplier criteria are freshness, lot size, and cost, with factor weights of 0.3, 0.1, and 0.6, respectively. What would a supplier with ratings of 6, 8, and 10 in the three respective categories score as a weighted total?

Accepted Answer

A)  24 
B)  1 
C)  7.4 
D)  9.8 
E)  8.6 
A)  24 
B)  1 
C)  7.4 
D)  9.8 
E)  8.6

Question 9

Identify the four types of inventory.

Accepted Answer

(1) raw material inventory; (2

Question 10

Which of the following is an element of inventory holding costs?

Accepted Answer

A)  housing costs 
B)  material handling costs 
C)  investment costs 
D)  pilferage, scrap, and obsolescence 
E)  All of these are elements of inventory holding costs. 
A)  housing costs 
B)  material handling costs 
C)  investment costs 
D)  pilferage, scrap, and obsolescence 
E)  All of these are elements of inventory holding costs.

Question 11

Which of the following is NOT an element of the disaster risk decision tree model?

Accepted Answer

A)  the buyer's financial loss incurred in a supply cycle if supplier i were disrupted 
B)  the marginal cost of managing a supplier 
C)  the buyer's financial loss incurred in a supply cycle if all suppliers were disrupted 
D)  the probability of a "super-event" that would disrupt all suppliers simultaneously 
E)  the probability of a "unique-event" that would disrupt only one supplier 
A)  the buyer's financial loss incurred in a supply cycle if supplier i were disrupted 
B)  the marginal cost of managing a supplier 
C)  the buyer's financial loss incurred in a supply cycle if all suppliers were disrupted 
D)  the probability of a "super-event" that would disrupt all suppliers simultaneously 
E)  the probability of a "unique-event" that would disrupt only one supplier

Question 12

The primary trade-off in transportation mode analysis involves evaluating ________ against the cost of shipping.

Accepted Answer

The answer of The primary trade-off in transportation mode analysis...

Question 13

Suppose that the manager of a company has estimated the probability of a super-event sometime during the next five years that will disrupt all suppliers as 5%, and the probability of a unique-event that would disrupt one of them sometime during the next five years to be 10%. Supplier management costs during this period are $30,000 per supplier. The financial cost incurred if all suppliers are disrupted at the same time is estimated to be $2,000,000. Assume that up to five nearly identical suppliers are available. How many suppliers should the manager use?

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  4 
E)  5 
A)  1 
B)  2 
C)  3 
D)  4 
E)  5

Question 14

Which of the following statements about the basic EOQ model is FALSE?

Accepted Answer

A)  If the setup cost were to decrease, the EOQ would fall. 
B)  If annual demand were to double, the number of orders per year would increase by 73%. 
C)  If the holding cost were to increase, the EOQ would decrease. 
D)  If annual demand were to double, the EOQ would rise. 
E)  None. All of these statements are true. 
A)  If the setup cost were to decrease, the EOQ would fall. 
B)  If annual demand were to double, the number of orders per year would increase by 73%. 
C)  If the holding cost were to increase, the EOQ would decrease. 
D)  If annual demand were to double, the EOQ would rise. 
E)  None. All of these statements are true.

Question 15

Under the disaster risk decision tree model, which of the following conditions would create the HIGHEST incentive to use MORE suppliers?

Accepted Answer

A)  lower S, lower U 
B)  lower S, higher U 
C)  higher S, lower U 
D)  higher S, higher U 
E)  higher S, higher U, higher C 
A)  lower S, lower U 
B)  lower S, higher U 
C)  higher S, lower U 
D)  higher S, higher U 
E)  higher S, higher U, higher C

Question 16

Suppose that a firm incurs a demand variance of 600 units per week, and the variance of orders that it places equals 550 per week. What is the value of the bullwhip measure for this company?

Accepted Answer

Variance of orders /

Question 17

In some inventory models, the optimal behavior occurs when ordering costs and carrying costs are equal to one another. Provide an example of a model where this rule does not hold; explain how the model's results are optimal anyway.

Accepted Answer

This rule will not hold in all instances

Question 18

Identify the typical components that constitute inventory holding or carrying costs.

Accepted Answer

Typical components of inventor

Question 19

What are the four functions of inventory?

Accepted Answer

(1) to provide a selection of goods for

Question 20

Safety stock in inventory systems depends only on the average demand during the lead time.

Accepted Answer

A) True 
 B)False

If demand is not uniform and constant, then stockout risks can be controlled by:

What is cycle counting?

A certain type of computer costs $10 per unit, and the annual holding cost is 25% of the value of the item. Annual demand is 1,000 units, and the order cost is $150 per order. What is the approximate economic order quantity?

In a quantity discount problem, if the savings in annual product cost is smaller than the increase in the sum of annual setup cost and annual holding cost, the discount should be ________.

Which of these statements about the production order quantity model is FALSE?

Identify the four types of inventory.

Which of the following is an element of inventory holding costs?

Which of the following is NOT an element of the disaster risk decision tree model?

The primary trade-off in transportation mode analysis involves evaluating ________ against the cost of shipping.

Which of the following statements about the basic EOQ model is FALSE?

Under the disaster risk decision tree model, which of the following conditions would create the HIGHEST incentive to use MORE suppliers?

Suppose that a firm incurs a demand variance of 600 units per week, and the variance of orders that it places equals 550 per week. What is the value of the bullwhip measure for this company?

In some inventory models, the optimal behavior occurs when ordering costs and carrying costs are equal to one another. Provide an example of a model where this rule does not hold; explain how the model's results are optimal anyway.

Identify the typical components that constitute inventory holding or carrying costs.

What are the four functions of inventory?

Safety stock in inventory systems depends only on the average demand during the lead time.

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Supply Chain Management

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Material Requirements Planning Mrp and Erp

Short-Term Scheduling

Lean Operations

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Exam 11: Inventory Management

If demand is not uniform and constant, then stockout risks can be controlled by:

What is cycle counting?

A certain type of computer costs $10 per unit, and the annual holding cost is 25% of the value of the item. Annual demand is 1,000 units, and the order cost is $150 per order. What is the approximate economic order quantity?

In a quantity discount problem, if the savings in annual product cost is smaller than the increase in the sum of annual setup cost and annual holding cost, the discount should be ________.

Which of these statements about the production order quantity model is FALSE?

Identify the four types of inventory.

Which of the following is an element of inventory holding costs?

Which of the following is NOT an element of the disaster risk decision tree model?

The primary trade-off in transportation mode analysis involves evaluating ________ against the cost of shipping.

Which of the following statements about the basic EOQ model is FALSE?

Under the disaster risk decision tree model, which of the following conditions would create the HIGHEST incentive to use MORE suppliers?

Suppose that a firm incurs a demand variance of 600 units per week, and the variance of orders that it places equals 550 per week. What is the value of the bullwhip measure for this company?

In some inventory models, the optimal behavior occurs when ordering costs and carrying costs are equal to one another. Provide an example of a model where this rule does not hold; explain how the model's results are optimal anyway.

Identify the typical components that constitute inventory holding or carrying costs.

What are the four functions of inventory?

Safety stock in inventory systems depends only on the average demand during the lead time.

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Process Strategies

Location Strategies

Human Resources, Job Design, and Work Measurement

Supply Chain Management

Aggregate Planning and Sop

Material Requirements Planning Mrp and Erp

Short-Term Scheduling

Lean Operations

Maintenance and Reliability

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

Applying Analytics to Big Data in Operations Management

Filters