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c. Take advantage of diseconomies of scale and reduce cost within the supply cha
in.
d. Take advantage of economies of scale and reduce cost within the supply chain.
10.The key players in any transportation that takes place within a supply chain
are
Select one:
a. The shipper and the carrier.
b. The shipper and the supplier.
c. The shipper and the manufacturer.
d. The shipper and the receiver.
11.Inventory holding costs would include which of the following?
Select one:
a. Buyer time
b. Obsolescence cost
c. Transportation cost
d. Receiving cost
12.As the safety inventory is increased
Select one:
a. Fill rate increases and cycle service level decreases.
b. Fill rate decreases and cycle service level increases.
c. Both fill rate and cycle service level increase.
d. Both fill rate and cycle service level decrease.
13.The cost of carrying one unit in inventory for a specified period of time, us
ually one year, is referred to as
Select one:
a. The fixed ordering cost and is denoted by S.
b. The material cost and is denoted by C.
c. The purchase price and is denoted by P.
d. The holding cost and is denoted by H.
14The expected shortage per replenishment cycle (ESC) is
Select one:
a. The average units of demand that are not satisfied from inventory in stock pe
r replenishment cycle.
b. The units of demand that are satisfied from inventory in stock in a given rep
lenishment cycle.
c. The units of demand that are not satisfied from inventory in stock in a given
replenishment cycle.
d. The average units of demand that are satisfied from inventory in stock per re
plenishment cycle.
15.A ________ occurs when a retailer purchases in the promotional period for sal
es in future periods.
Select one:
a. Backward buy
b. Pricing incentive
c. Forward buy
d. Inventory shift
16.The trade-off that a supply chain manager must consider when planning safety
inventory is
Select one:
a. Increasing product availability versus raising the level of safety inventory.
b. Decreasing product availability versus decreasing the level of safety invento
ry.
c. Increasing product availability versus increasing inventory holding costs.
d. Decreasing product availability versus decreasing inventory holding costs.
17.The use of one product to satisfy demand for a different product is
Select one:
a. Product substitution.
b. Information centralization.
c. Specialization.
d. Component commonality.