The practice where a firm charges differential prices to maximize profits is
A) lot pricing.
B) marginal pricing.
C) price incrimination.
D) price discrimination.
Historical demand for Peeps is as displayed in the table.
Use a simple moving average of three periods to forecast the demand for July. What is
the forecast?
A) 67
B) 58
C) 48.5
D) 45.3
Discounts related to price discrimination will be
A) volume based.
B) unit based.
C) marginally based.
D) lot size based.
The number of different products/configurations that a customer desires from the
distribution network is
A) response time.
B) product variety.
C) product availability.
D) customer experience.
Aggregate forecasts are usually more accurate than disaggregate forecasts because
A) aggregate forecasts tend to have a larger standard deviation of error relative to the
mean.
B) aggregate forecasts tend to have a smaller standard deviation of error relative to the
mean.
C) disaggregate forecasts tend to have a smaller standard deviation of error relative to
the mean.
D) disaggregate forecasts tend to have less standard deviation of error relative to the
mean.
The discount factor used to obtain the present value of money in the next period where
k represents the rate of return is
A)
B) 1 +
C) 1/(1 + ).
D) /(1 + ).
The additive form of the systematic component of demand is shown as
A) level x trend x seasonal factor.
B) level + trend + seasonal factor.
C) (level + trend) x seasonal factor.
D) level x (trend + seasonal factor).
Hotels use differential pricing by day of week and time of year
A) in order to shift demand from peak periods to off-peak periods.
B) in order to increase demand during off-peak periods.
C) in order to shift revenue from peak periods to off-peak periods.
D) in order to shift profit from peak periods to off-peak periods.
The cycle view of a supply chain holds that
A) the processes in a supply chain are divided into 2 categories.
B) the processes in a supply chain are divided into a series of activities performed at the
interface between successive stages.
C) all processes in a supply chain are initiated in response to a customer order.
D) all processes in a supply chain are performed in anticipation of customer orders.
Avon Barksdale’s operation uses large quantities of prepaid cell phones, on average 500
per week with a standard deviation of 45. The lead time for their own brand of prepaid
cell phones is two weeks and they have a lot size of 125 phones.
What is the average flow time of a phone if the reorder point used by Mr. Barksdale is
2000 phones?
A) 1.74 weeks
B) 1.87 weeks
C) 2.00 weeks
D) 2.13 weeks
The situation in which fluctuations in orders increase as they move up the supply chain
from retailers to wholesalers to manufacturers to suppliers is known as
A) market fluctuations.
B) the whiplash effect.
C) the bullwhip effect.
D) lack of visibility.
Decisions made during the supply chain design phase regarding significant investments
in the supply chain, such as the number and size of plants to build, the number of trucks
to purchase or lease, and whether to build or lease warehouse space,
A) are realigned every few weeks.
B) only remain in place for several years.
C) only remain in place for a few weeks.
D) often remain in place for several years.
It is best to disaggregate all inventories and use an inexpensive mode of transportation
for replenishment when you have a
A) high-value product and high demand.
B) high-value product and low demand.
C) low-value product and high demand.
D) low-value product and low demand.
The push/pull view of the supply chain is useful when considering strategic decisions
relating to supply chain design, because
A) it categorizes processes based on whether they are initiated in response to or in
anticipation of customer orders.
B) it specifies the roles and responsibilities of each member of the supply chain.
C) it clearly defines the processes involved and the owners of each process.
D) it focuses on processes that are external to the firm.
A facility that serves the market where it is located but also assumes responsibility for
product customization, process improvements, product modifications, or product
development is
A) an offshore facility.
B) a source facility.
C) a server facility.
D) a contributor facility.
Supply chain network design decisions classified as facility location are concerned with
A) what processes are performed at each facility.
B) where facilities should be located.
C) how much capacity should be allocated to each facility.
D) what markets each facility should serve and which supply sources should feed each
facility.
The lack of coordination within a supply chain will result in an increase in
A) profitability.
B) inventory accuracy.
C) replenishment lead time.
D) level of product availability.
The data and analysis concerning facilities, inventory, transportation, and customers
throughout the supply chain is known as
A) facilities.
B) inventory.
C) transportation.
D) information.
The net present value (NPV) of a stream of cash flows is equal to
A) the sum of all cash flows for all periods being considered.
B) the sum of all cash flows for all periods being considered divided by the number of
periods.
C) the average of all cash flows for all periods being considered multiplied by the
number of periods.
D) the sum of all cash flows for all periods being considered discounted by the rate of
return for each period.
The loss incurred by a firm for each unsold unit at the end of the selling season is
A) the cost of overstocking the product.
B) the cost of stocking the product.
C) the cost of understocking the product.
D) the cost of overselling the product.