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Personnel can utilize forecasts to make decisions concerning
A) scheduling.
B) promotions.
C) plant/equipment investment.
D) purchasing.
Which of the following uses transportation to minimize the total cost (transportation,
inventory, information, and facility) while providing an appropriate level of
responsiveness to the customer?
A) The shipper
B) The supplier
C) The manufacturer
D) The carrier
The goal of aggregate planning is to
A) dissatisfy customers in a way that maximizes profit.
B) dissatisfy customers in a way that minimizes profit.
C) satisfy demand in a way that maximizes profit.
D) satisfy demand in a way that minimizes profit.
The manufacturing cycle occurs at the
A) customer/retailer interface.
B) retailer/distributor interface.
C) distributor/manufacturer interface.
D) manufacturer/supplier interface.
Which approach to capacity management would use a part-time workforce to increase
capacity flexibility by enabling the firm to have more people at work during peak
periods?
A) Time flexibility from workforce
B) Use of seasonal workforce
C) Use of subcontracting
D) Use of dual facilities-dedicated and flexible
In general, as the fraction of increased demand coming from forward buying grows,
offering the promotion during the peak demand period becomes
A) less attractive.
B) more attractive.
C) more profitable.
D) less significant.
Shifting demand from peak to off-peak periods is beneficial if the discount given
A) during the off-peak period is more than offset by the decrease in cost because of a
larger peak.
B) during the off-peak period is more than offset by the decrease in cost because of a
smaller peak.
C) during the peak period is more than offset by the decrease in cost because of a
smaller peak.
D) during the peak period is more than offset by the decrease in cost because of a larger
peak.
The cost of wasted capacity is
A) the reduction in margin that results from having to go to a backup source.
B) the margin that would have been generated if the capacity had been used for
production.
C) the productivity increase generated when the capacity is used for production.
D) the sales potential of excess capacity kept in reserve for emergency production.
Which of the following is an advantage of retail storage with customer pickup?
A) Inventory cost is higher than all other options.
B) Transportation cost is lower than all other options.
C) Facilities and handling costs are higher than other options.
D) Product variety is lower than all other options.
The S&H Mercantile in Luther is the only game in town for a number of items, and
tries valiantly to use only the storage space needed to display items since there is no
stock room in the back of the store. One popular item, a 16-ounce can of dehydrated
water, takes up 20 square inches of shelf space. The shelf space available for this item
measures five feet by four feet. The store manager would like to order a quantity that
can fill the shelf space without stacking and without needing to store cans elsewhere in
the store. The amount ordered should all be on display once the S&H runs out and
ideally would arrive just as the last can is purchased.
Drought conditions spike demand during the summer to an annualized rate of 27,000
cans per year and the price rises to $12 per can. If the ordering cost per lot is 75 cents,
what is the holding cost percentage?
A) 3.1%
B) 1.81%
C) 31%
D) 18.1%
As the safety inventory is increased,
A) fill rate increases and cycle service level decreases.
B) fill rate decreases and cycle service level increases.
C) both fill rate and cycle service level increase.
D) both fill rate and cycle service level decrease.
If demand is uncertain, a manufacturer can incentivize retailers to provide high levels of
product availability by using
A) high fixed costs.
B) buyback contracts.
C) low fixed costs.
D) zero-cost contracts.
Suppose that a highway is governed by a use fee charged to motorists that is based on
congestion, operation and maintenance. The total traffic t is used to determine the cost
of 5t2 + 7t. What is the marginal cost?
A) 12
B) 5t + 7
C) 10
D) 10t + 7
What is the name of the plan that breaks apart the aggregate plan into distinct product
families?
A) Master production schedule
B) Rough cut capacity plan
C) SKU aggregate plan
D) Process plan
What type of inventory is one of the most damaging from a sustainability perspective?
A) Raw materials
B) Work in process
C) Finished goods
D) Landfill
Which approach to capacity management may be hard to sustain if the labor market is
tight?
A) Time flexibility from workforce
B) Use of seasonal workforce
C) Use of subcontracting
D) Use of dual facilities-dedicated and flexible
The relationship where increasing implied uncertainty from customers and supply
sources is best served by increasing responsiveness from the supply chain is known as
the
A) implied uncertainty spectrum.
B) responsiveness spectrum.
C) uncertainty/responsiveness map.
D) zone of strategic fit.
