Exam 12: Managing Uncertainty in a Supply Chain: Safety Inventory

Explore all topics

Weekly demand for 12" frames at the Frame Shop is normally distributed with a mean of 250 and a standard deviation of 150.The store manager has decided to follow a periodic review policy to manage inventory of cell phones.They plan to order every three weeks.The manufacturer currently takes two weeks to fill an order.Given a desired CSL of 95 percent,how much safety inventory should the store carry? What should their OUL be?

(Essay)

5.0/5

(29)

Question 81

The fraction of orders that are filled from available inventory is the

(Multiple Choice)

4.9/5

(42)

Question 82

What key question(s)need(s)to be considered when planning safety inventory for any supply chain?

(Multiple Choice)

4.9/5

(44)

Question 83

The required safety inventory

(Multiple Choice)

4.8/5

(45)

Question 84

In case demand in different geographical regions is about the same size and independent,aggregation increases safety inventory by the square root of the number of areas aggregated.

(True/False)

4.8/5

(28)

Question 85

Product availability reflects a firm's ability to fill a customer order out of available inventory.Which of the following is not a measure of product availability?

(Multiple Choice)

4.8/5

(36)

Question 86

The fill rate increases and the cycle service level decreases as the safety inventory is increased.

(True/False)

4.8/5

(38)

Question 87

Which of the following is not an approach to reduce the level of safety inventory required in a way that does not adversely affect product availability?

(Multiple Choice)

4.8/5

(32)

Question 88

Product availability reflects a firm's ability to fill a customer order out of available inventory.

(True/False)

4.9/5

(38)

Question 89

A company that checks inventory status at regular periodic intervals and places an order to raise the inventory level to a specified threshold is using

(Multiple Choice)

4.9/5

(46)

Question 90

Describe the two types of ordering policies and the impact each has on safety inventory.

(Essay)

4.9/5

(37)

Question 91

Both and increase as the safety inventory is increased.

(Multiple Choice)

4.9/5

(30)

Question 92

Raising the level of safety inventory increases inventory holding costs.

(True/False)

4.9/5

(33)

Question 93

________ is the ability of a supply chain to delay product differentiation or customization until closer to the time the product is sold.

(Multiple Choice)

4.8/5

(30)

Question 94

In most supply chains,the key to reducing the underlying forecast uncertainty is to link all forecasts throughout the supply chain to customer demand data.

(True/False)

4.8/5

(49)

Question 95

The coefficient of variation measures

(Multiple Choice)

4.9/5

(44)

Question 96

Showing 81 - 96 of 96

The fraction of orders that are filled from available inventory is the

What key question(s)need(s)to be considered when planning safety inventory for any supply chain?

The required safety inventory

In case demand in different geographical regions is about the same size and independent,aggregation increases safety inventory by the square root of the number of areas aggregated.

Product availability reflects a firm's ability to fill a customer order out of available inventory.Which of the following is not a measure of product availability?

The fill rate increases and the cycle service level decreases as the safety inventory is increased.

Which of the following is not an approach to reduce the level of safety inventory required in a way that does not adversely affect product availability?

Product availability reflects a firm's ability to fill a customer order out of available inventory.

A company that checks inventory status at regular periodic intervals and places an order to raise the inventory level to a specified threshold is using

Describe the two types of ordering policies and the impact each has on safety inventory.

Both and increase as the safety inventory is increased.

Raising the level of safety inventory increases inventory holding costs.

________ is the ability of a supply chain to delay product differentiation or customization until closer to the time the product is sold.

In most supply chains,the key to reducing the underlying forecast uncertainty is to link all forecasts throughout the supply chain to customer demand data.

The coefficient of variation measures

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 Economies of Scale in the Supply Chain: Cycle 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 12: Managing Uncertainty in a Supply Chain: Safety Inventory

The fraction of orders that are filled from available inventory is the

What key question(s)need(s)to be considered when planning safety inventory for any supply chain?

The required safety inventory

In case demand in different geographical regions is about the same size and independent,aggregation increases safety inventory by the square root of the number of areas aggregated.

Product availability reflects a firm's ability to fill a customer order out of available inventory.Which of the following is not a measure of product availability?

The fill rate increases and the cycle service level decreases as the safety inventory is increased.

Which of the following is not an approach to reduce the level of safety inventory required in a way that does not adversely affect product availability?

Product availability reflects a firm's ability to fill a customer order out of available inventory.

A company that checks inventory status at regular periodic intervals and places an order to raise the inventory level to a specified threshold is using

Describe the two types of ordering policies and the impact each has on safety inventory.

Both ________ and ________ increase as the safety inventory is increased.

Raising the level of safety inventory increases inventory holding costs.

________ is the ability of a supply chain to delay product differentiation or customization until closer to the time the product is sold.

In most supply chains,the key to reducing the underlying forecast uncertainty is to link all forecasts throughout the supply chain to customer demand data.

The coefficient of variation measures

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 Economies of Scale in the Supply Chain: Cycle 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

Both and increase as the safety inventory is increased.