Question 1

Which of the following is not a consequence of being able to place a second order during the season for a seasonal product?

Accepted Answer

A)  The expected total quantity ordered during the season with two orders is less. 
B)  The average overstock to be disposed of at the end of the sales season is less. 
C)  The profits are higher. 
D)  The average inventory level is higher. 
A)  The expected total quantity ordered during the season with two orders is less. 
B)  The average overstock to be disposed of at the end of the sales season is less. 
C)  The profits are higher. 
D)  The average inventory level is higher. D

Question 2

As the ratio of the cost of overstocking to the cost of understocking gets smaller,the optimal level of product availability decreases.

Accepted Answer

A) True 
 B)False  False

Question 3

Quick response is clearly advantageous to

Accepted Answer

A)  a distributor in the supply chain. 
B)  a retailer in the supply chain. 
C)  a manufacturer in the supply chain. 
D)  every step in the supply chain. 
A)  a distributor in the supply chain. 
B)  a retailer in the supply chain. 
C)  a manufacturer in the supply chain. 
D)  every step in the supply chain. B

Question 4

________ allows a firm to increase profits and better match supply and demand if the firm produces a large variety of products whose demand is unpredictable,not positively correlated,and is of about the same size.

Accepted Answer

A)  Shortened forecasting window 
B)  Quick response 
C)  Postponement 
D)  Tailored sourcing 
A)  Shortened forecasting window 
B)  Quick response 
C)  Postponement 
D)  Tailored sourcing

Question 5

________ may reduce overall profits for a firm if a single product contributes the majority of the demand.

Accepted Answer

A)  Shortened forecasting window 
B)  Quick response 
C)  Postponement 
D)  Tailored sourcing 
A)  Shortened forecasting window 
B)  Quick response 
C)  Postponement 
D)  Tailored sourcing

Question 6

Under tailored postponement,a firm produces the amount that is very likely to sell using

Accepted Answer

A)  the lower cost production method with postponement and produces the portion of demand that is uncertain using postponement. 
B)  the lower cost production method without postponement and produces the portion of demand that is uncertain using postponement. 
C)  the higher cost production method with postponement and produces the portion of demand that is uncertain using postponement. 
D)  the higher cost production method without postponement and produces the portion of demand that is uncertain using postponement. 
A)  the lower cost production method with postponement and produces the portion of demand that is uncertain using postponement. 
B)  the lower cost production method without postponement and produces the portion of demand that is uncertain using postponement. 
C)  the higher cost production method with postponement and produces the portion of demand that is uncertain using postponement. 
D)  the higher cost production method without postponement and produces the portion of demand that is uncertain using postponement.

Question 7

A manager can reduce demand uncertainty via the following means EXCEPT

Accepted Answer

A)  lengthened forecasting window. 
B)  quick response. 
C)  postponement. 
D)  tailored sourcing. 
A)  lengthened forecasting window. 
B)  quick response. 
C)  postponement. 
D)  tailored sourcing.

Question 8

Which of the following would be a strategy to increase the salvage value of an unsold product?

Accepted Answer

A)  Discarding the unused material 
B)  Selling unsold product to an outlet store 
C)  Keeping the product in inventory until it sells 
D)  Reduce the level of cycle inventory 
A)  Discarding the unused material 
B)  Selling unsold product to an outlet store 
C)  Keeping the product in inventory until it sells 
D)  Reduce the level of cycle inventory

Question 9

Decribe managerial levers to increase profitability within a supply chain.

Accepted Answer

1.Improved forecasting: Use better marke

Question 10

Tailored postponement allows a firm to increase its profitability by only postponing the uncertain part of the demand and producing the predictable part at a lower cost without postponement.

Accepted Answer

A) True 
 B)False

Question 11

A high level of product availability requires less inventory,which will keep costs down for the supply chain.

Accepted Answer

A) True 
 B)False

Question 12

A high level of product availability requires ________,which raises supply chain costs.

Accepted Answer

A)  large inventories 
B)  increased revenues 
C)  reduced costs 
D)  understocking the product 
A)  large inventories 
B)  increased revenues 
C)  reduced costs 
D)  understocking the product

Question 13

A supply chain needs to achieve a balance between the level of availability and the cost of inventory that maximizes supply chain revenues.

Accepted Answer

A) True 
 B)False

Question 14

As the total quantity for the season is broken up into multiple smaller orders,the buyer is better able to

Accepted Answer

A)  match supply and demand and increase cost. 
B)  match supply and demand and increase profitability. 
C)  match supply and demand and decrease profitability. 
D)  match supply and demand and decrease product availability. 
A)  match supply and demand and increase cost. 
B)  match supply and demand and increase profitability. 
C)  match supply and demand and decrease profitability. 
D)  match supply and demand and decrease product availability.

Question 15

When a firm uses production with postponement to satisfy a part of its demand with the rest being satisfied without postponement,it is using

Accepted Answer

A)  adjustable postponement. 
B)  flexible postponement. 
C)  managed postponement. 
D)  tailored postponement. 
A)  adjustable postponement. 
B)  flexible postponement. 
C)  managed postponement. 
D)  tailored postponement.

Question 16

________ allows a firm to increase profits and better match supply and demand if the firm produces a large variety of products whose demand is unpredictable,not positively correlated,and is of about the same size.

Accepted Answer

A)  Shortened forecasting window 
B)  Quick response 
C)  Postponement 
D)  Tailored sourcing 
A)  Shortened forecasting window 
B)  Quick response 
C)  Postponement 
D)  Tailored sourcing

Question 17

As lead times decrease,supply chain managers are able to

Accepted Answer

A)  better match supply with demand. 
B)  better match demand with supply. 
C)  increase supply chain cost. 
D)  decrease product availability. 
A)  better match supply with demand. 
B)  better match demand with supply. 
C)  increase supply chain cost. 
D)  decrease product availability.

Question 18

The key factors that influence the optimal level of product availability do not include

Accepted Answer

A)  the cost of overstocking the product. 
B)  the cost of stocking the product. 
C)  the cost of understocking the product. 
D)  All of the above are key factors. 
A)  the cost of overstocking the product. 
B)  the cost of stocking the product. 
C)  the cost of understocking the product. 
D)  All of the above are key factors.

Question 19

A manufacturer of lawn care equipment has introduced a new product.The anticipated demand is normally distributed with a mean of μ = 100 and a standard deviation of σ = 50.Each unit costs $75 to manufacture and the introductory price is to be $125 to achieve this level of sales.Any unsold units at the end of the season are unlikely to be very valuable and will be disposed of in a fire sale for $25 each.It costs $10 to hold a unit in inventory for the entire season.What is the cost of overstocking? What is the cost of understocking? What is the optimal cycle service level? How many units should be manufactured for sale?

Accepted Answer

Co = c - s
= $75 - $15
= $60
C

Question 20

The margin lost by a firm for each lost sale because there is no inventory on hand is

Accepted Answer

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. 
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.

Which of the following is not a consequence of being able to place a second order during the season for a seasonal product?

As the ratio of the cost of overstocking to the cost of understocking gets smaller,the optimal level of product availability decreases.

Quick response is clearly advantageous to

________ allows a firm to increase profits and better match supply and demand if the firm produces a large variety of products whose demand is unpredictable,not positively correlated,and is of about the same size.

________ may reduce overall profits for a firm if a single product contributes the majority of the demand.

Under tailored postponement,a firm produces the amount that is very likely to sell using

A manager can reduce demand uncertainty via the following means EXCEPT

Which of the following would be a strategy to increase the salvage value of an unsold product?

Decribe managerial levers to increase profitability within a supply chain.

Tailored postponement allows a firm to increase its profitability by only postponing the uncertain part of the demand and producing the predictable part at a lower cost without postponement.

A high level of product availability requires less inventory,which will keep costs down for the supply chain.

A high level of product availability requires ________,which raises supply chain costs.

A supply chain needs to achieve a balance between the level of availability and the cost of inventory that maximizes supply chain revenues.

As the total quantity for the season is broken up into multiple smaller orders,the buyer is better able to

When a firm uses production with postponement to satisfy a part of its demand with the rest being satisfied without postponement,it is using

________ allows a firm to increase profits and better match supply and demand if the firm produces a large variety of products whose demand is unpredictable,not positively correlated,and is of about the same size.

As lead times decrease,supply chain managers are able to

The key factors that influence the optimal level of product availability do not include

The margin lost by a firm for each lost sale because there is no inventory on hand is

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

Managing Uncertainty in a Supply Chain: Safety Inventory

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 13: Determining the Optimal Level of Product Availability

Which of the following is not a consequence of being able to place a second order during the season for a seasonal product?

As the ratio of the cost of overstocking to the cost of understocking gets smaller,the optimal level of product availability decreases.

Quick response is clearly advantageous to

________ allows a firm to increase profits and better match supply and demand if the firm produces a large variety of products whose demand is unpredictable,not positively correlated,and is of about the same size.

________ may reduce overall profits for a firm if a single product contributes the majority of the demand.

Under tailored postponement,a firm produces the amount that is very likely to sell using

A manager can reduce demand uncertainty via the following means EXCEPT

Which of the following would be a strategy to increase the salvage value of an unsold product?

Decribe managerial levers to increase profitability within a supply chain.

Tailored postponement allows a firm to increase its profitability by only postponing the uncertain part of the demand and producing the predictable part at a lower cost without postponement.

A high level of product availability requires less inventory,which will keep costs down for the supply chain.

A high level of product availability requires ________,which raises supply chain costs.

A supply chain needs to achieve a balance between the level of availability and the cost of inventory that maximizes supply chain revenues.

As the total quantity for the season is broken up into multiple smaller orders,the buyer is better able to

When a firm uses production with postponement to satisfy a part of its demand with the rest being satisfied without postponement,it is using

________ allows a firm to increase profits and better match supply and demand if the firm produces a large variety of products whose demand is unpredictable,not positively correlated,and is of about the same size.

As lead times decrease,supply chain managers are able to

The key factors that influence the optimal level of product availability do not include

The margin lost by a firm for each lost sale because there is no inventory on hand is

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

Managing Uncertainty in a Supply Chain: Safety Inventory

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