Offering a promotion during a peak period that has significant forward buying creates
even more variable demand than before the promotion.
The cost of oversellingis denoted by Coand is the loss incurred by a firm for each
unsold unit at the end of the selling season.
Cycle inventory is inventory that is built up to counter predictable variability in
demand.
The degree of supply chain responsiveness should be consistent with the implied
uncertainty.
The costs considered in lot sizing decisions include material cost, fixed ordering cost,
and manufacturing cost.
The aggregate plan should be communicated to
A) only the local firm.
B) only downstream partners.
C) only upstream partners.
D) all supply chain partners who will be affected by it.
The objective of the customer arrival process is to
A) get the correct orders to customers by the promised due date at the lowest possible
cost.
B) maintain a record of product receipt and complete payment.
C) maximize the conversion of customer arrivals to customer orders.
D) ensure that orders are quickly and accurately entered and communicated to other
affected supply chain processes.
With a fixed cost of $100 per order, Nathan decided it was vital to get his money’s
worth. His monthly demand for energy drinks was 10,000 bottles and holding cost was
estimated at 20% of unit cost. The mail order company offered him a couple of
possibilities – he could pay $4.00 per bottle for orders of up to 10,000 bottles. After that
threshold, he would pay only $3.98 per bottle, and if he ordered 20,00 or more bottles
in an order, he would pay only $3.96 per bottle.
What is the best total cost that Nathan can incur?
A) $488,644
B) $492,780
C) $493,720
D) $484,382
Use Solver to determine the alpha that minimizes the MAD for the ten period forecast
for the data that appear in this table. Use the actual demand as the forecast for period 1
and then use exponential smoothing.
A) 0.2
B) 0.3
C) 0.4
D) 0.5
The simple exponential smoothing forecastmethod is appropriate when
A) demand has observable trend or seasonality.
B) demand has no observable trend or seasonality.
C) demand has observable trend and seasonality.
D) demand has no observable level or seasonality.
Which of the following is a commonly used measure for measuring forecast error?
A) MDE
B) MKE
C) MAD
D) MES
Which approach to aggregation requires an information system that allows access to
current inventory records from each location?
A) Information centralization
B) Specialization
C) Product substitution
D) Component commonality
Under a carbon tax system, the price of emissions is
A) the tax rate set directly by the regulatory authority.
B) decided by the emitters.
C) determined by the fraction of total carbon assignable to the company.
D) agreed upon by all firms competing for the same pool of customers.
Customer order entry is
A) the point in time when the customer has access to choices and makes a decision
regarding a purchase.
B) the customer informing the retailer of what they want to purchase and the retailer
allocating product to the customer.
C) the process where product is prepared and sent to the customer.
D) the process where the customer receives the product and takes ownership.
Inventory held to satisfy demand that is higher than forecasted is
A) safety backlog.
B) safety capacity.
C) safety inventory.
D) safety sales.
Among the sources of risk identified in global supply chains, the lowest among these
four is
A) shortage of skilled resources.
B) currency fluctuation.
C) inflexible supply chain technology.
D) terrorist infiltration of cargo.
In general, the further up the supply chain a company is (or the further they are from the
consumer),
A) the greater the distortion of information they receive.
B) the smaller the distortion of information they receive.
C) the information they receive is more accurate.
D) the information they receive is more useful.