Question 1

For commodity products where price is set by the market,manufacturers can use lot size based quantity discounts to

Accepted Answer

A)  achieve coordination in the supply chain and increase supply chain cost. 
B)  relax coordination in the supply chain and increase supply chain cost. 
C)  relax coordination in the supply chain and decrease supply chain cost. 
D)  achieve coordination in the supply chain and decrease supply chain cost. 
A)  achieve coordination in the supply chain and increase supply chain cost. 
B)  relax coordination in the supply chain and increase supply chain cost. 
C)  relax coordination in the supply chain and decrease supply chain cost. 
D)  achieve coordination in the supply chain and decrease supply chain cost. D

Question 2

Which cost should only include receiving and storage costs that vary with the quantity of product received?

Accepted Answer

A)  Cost of capital 
B)  Obsolescence (spoilage) cost 
C)  Handling cost 
D)  Occupancy cost 
A)  Cost of capital 
B)  Obsolescence (spoilage) cost 
C)  Handling cost 
D)  Occupancy cost C

Question 3

Which of the following is a possible response that a retailer could make to a trade promotion?

Accepted Answer

A)  Pass through some or all of the promotion to customers to spur sales. 
B)  Pass through very little of the promotion to customers but purchase in greater quantity during the promotion period to exploit the temporary reduction in price. 
C)  Shift inventory from the retailer to the customer. 
D)  A and B only 
A)  Pass through some or all of the promotion to customers to spur sales. 
B)  Pass through very little of the promotion to customers but purchase in greater quantity during the promotion period to exploit the temporary reduction in price. 
C)  Shift inventory from the retailer to the customer. 
D)  A and B only D

Question 4

The goal of trade promotions is to influence retailers to act in a way that helps the retailer achieve its objectives.

Accepted Answer

A) True 
 B)False

Question 5

The XYZ Company has an assembly plant in Cincinnati and its parts plant in Indianapolis.Parts are transported from Indianapolis to Cincinnati using trucks.Each shipment costs $100.The Cincinnati plant assembles and sells 300 finished products each day and operates 50 weeks a year.Part #456 costs $50 and XYZ Company incurs a holding cost of 20 percent per year.How many of part #456 should XYZ Company put in each shipment? What is the cycle inventory of part #456 at XYZ Company?

Accepted Answer

Q* = @#LAT-DLM&
= @#LAT-DLM&
= 1224.745

Question 6

The inventory profile is a plot depicting the level of inventory over time.

Accepted Answer

A) True 
 B)False

Question 7

Discounts related to price discrimination will be

Accepted Answer

A)  volume based. 
B)  unit based. 
C)  marginally based. 
D)  lot size based. 
A)  volume based. 
B)  unit based. 
C)  marginally based. 
D)  lot size based.

Question 8

When demand is steady,cycle inventory and lot size are related as follows:
Cycle Inventory = Lot Size × 2 = Q*2.

Accepted Answer

A) True 
 B)False

Question 9

A key to reducing lot size without increasing costs is to reduce the holding cost associated with each lot.

Accepted Answer

A) True 
 B)False

Question 10

The cost of carrying one unit in inventory for a specified period of time,usually one year,is referred to as

Accepted Answer

A)  the material cost and is denoted by C. 
B)  the fixed ordering cost and is denoted by S. 
C)  the holding cost and is denoted by H. 
D)  the purchase price and is denoted by P. 
A)  the material cost and is denoted by C. 
B)  the fixed ordering cost and is denoted by S. 
C)  the holding cost and is denoted by H. 
D)  the purchase price and is denoted by P.

Question 11

Aggregating across products,retailers,or suppliers in a single order allows for

Accepted Answer

A)  an increase in lot size for individual products. 
B)  an increase in customer demand. 
C)  a reduction in holding cost per unit. 
D)  a reduction in lot size for individual products. 
E)  a reduction in purchase price per unit. 
A)  an increase in lot size for individual products. 
B)  an increase in customer demand. 
C)  a reduction in holding cost per unit. 
D)  a reduction in lot size for individual products. 
E)  a reduction in purchase price per unit.

Question 12

Discuss the characteristics of a successful multi-echelon supply chain.

Accepted Answer

For such a multi-echelon distribution su

Question 13

Which of the following is not a cost that must be considered in any lot sizing decision?

Accepted Answer

A)  Average price per unit purchased, $C/unit 
B)  Fixed ordering cost incurred per lot, $S/lot 
C)  Holding cost incurred per unit per year, $H/unit/year = hC 
D)  Manufacturing cost per unit, $M/unit 
A)  Average price per unit purchased, $C/unit 
B)  Fixed ordering cost incurred per lot, $S/lot 
C)  Holding cost incurred per unit per year, $H/unit/year = hC 
D)  Manufacturing cost per unit, $M/unit

Question 14

A key to reducing cycle inventory is the reduction of lot size.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following would not be included in holding cost?

Accepted Answer

A)  Cost of capital 
B)  Cost of physically storing the inventory 
C)  Cost of manufacturing 
D)  Cost that results from the product becoming obsolete 
A)  Cost of capital 
B)  Cost of physically storing the inventory 
C)  Cost of manufacturing 
D)  Cost that results from the product becoming obsolete

Question 16

Cycle inventory exists because producing or purchasing in large lots allows a stage of the supply chain to exploit economies of scale and increase cost.

Accepted Answer

A) True 
 B)False

Question 17

A graphical plot depicting the level of inventory over time is

Accepted Answer

A)  an inventory graph. 
B)  a distribution inventory. 
C)  an inventory drawing. 
D)  an inventory profile. 
E)  an inventory picture. 
A)  an inventory graph. 
B)  a distribution inventory. 
C)  an inventory drawing. 
D)  an inventory profile. 
E)  an inventory picture.

Question 18

Quantity discounts lead to a minor buildup of cycle inventory in the supply chain.

Accepted Answer

A) True 
 B)False

Question 19

Lot sizes and cycle inventory do not affect the flow time of material within the supply chain.

Accepted Answer

A) True 
 B)False

Question 20

Pricing schedules with all unit quantity discounts encourage retailers to increase the size of their lots,which reduces the average inventory and flow time in a supply chain.

Accepted Answer

A) True 
 B)False

For commodity products where price is set by the market,manufacturers can use lot size based quantity discounts to

Which cost should only include receiving and storage costs that vary with the quantity of product received?

Which of the following is a possible response that a retailer could make to a trade promotion?

The goal of trade promotions is to influence retailers to act in a way that helps the retailer achieve its objectives.

The inventory profile is a plot depicting the level of inventory over time.

Discounts related to price discrimination will be

When demand is steady,cycle inventory and lot size are related as follows: Cycle Inventory = Lot Size × 2 = Q*2.

A key to reducing lot size without increasing costs is to reduce the holding cost associated with each lot.

The cost of carrying one unit in inventory for a specified period of time,usually one year,is referred to as

Aggregating across products,retailers,or suppliers in a single order allows for

Discuss the characteristics of a successful multi-echelon supply chain.

Which of the following is not a cost that must be considered in any lot sizing decision?

A key to reducing cycle inventory is the reduction of lot size.

Which of the following would not be included in holding cost?

Cycle inventory exists because producing or purchasing in large lots allows a stage of the supply chain to exploit economies of scale and increase cost.

A graphical plot depicting the level of inventory over time is

Quantity discounts lead to a minor buildup of cycle inventory in the supply chain.

Lot sizes and cycle inventory do not affect the flow time of material within the supply chain.

Pricing schedules with all unit quantity discounts encourage retailers to increase the size of their lots,which reduces the average inventory and flow time in a supply chain.

Understanding the Supply Chain

Supply Chain Performance: Achieving Strategic Fit and Scope

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to E-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Aggregate Planning in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand in a Supply Chain

Coordination in a Supply Chain

Managing Uncertainty in a Supply Chain: Safety Inventory

Determining the Optimal Level of Product Availability

Transportation in a Supply Chain

Sourcing Decisions in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Information Technology in a Supply Chain

Sustainability and the Supply Chain

Filters

Exam 11: Managing Economies of Scale in the Supply Chain: Cycle Inventory

For commodity products where price is set by the market,manufacturers can use lot size based quantity discounts to

Which cost should only include receiving and storage costs that vary with the quantity of product received?

Which of the following is a possible response that a retailer could make to a trade promotion?

The goal of trade promotions is to influence retailers to act in a way that helps the retailer achieve its objectives.

The inventory profile is a plot depicting the level of inventory over time.

Discounts related to price discrimination will be

When demand is steady,cycle inventory and lot size are related as follows: Cycle Inventory = Lot Size × 2 = Q*2.

A key to reducing lot size without increasing costs is to reduce the holding cost associated with each lot.

The cost of carrying one unit in inventory for a specified period of time,usually one year,is referred to as

Aggregating across products,retailers,or suppliers in a single order allows for

Discuss the characteristics of a successful multi-echelon supply chain.

Which of the following is not a cost that must be considered in any lot sizing decision?

A key to reducing cycle inventory is the reduction of lot size.

Which of the following would not be included in holding cost?

Cycle inventory exists because producing or purchasing in large lots allows a stage of the supply chain to exploit economies of scale and increase cost.

A graphical plot depicting the level of inventory over time is

Quantity discounts lead to a minor buildup of cycle inventory in the supply chain.

Lot sizes and cycle inventory do not affect the flow time of material within the supply chain.

Pricing schedules with all unit quantity discounts encourage retailers to increase the size of their lots,which reduces the average inventory and flow time in a supply chain.

Understanding the Supply Chain

Supply Chain Performance: Achieving Strategic Fit and Scope

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to E-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Aggregate Planning in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand in a Supply Chain

Coordination in a Supply Chain

Managing Uncertainty in a Supply Chain: Safety Inventory

Determining the Optimal Level of Product Availability

Transportation in a Supply Chain

Sourcing Decisions in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Information Technology in a Supply Chain

Sustainability and the Supply Chain

Filters