Exam 3 Flashcards
Inventory that is “in the pipeline” moving from one link to another is:
A) transportation inventory.
B) hedge inventory.
C) anticipation inventory.
D) smoothing inventory.
A
A hospital’s biomedical repair shop uses a 4-week periodic system to maintain the inventory on the blood pressure cuff repair parts. They use an average 40 adult arm cuffs with a standard deviation of 6 cuffs every 4 weeks. Cuffs aren’t the most critical item they carry, but the manager would like to avoid the embarrassment of a stockout at least 95% of the time. What should their restocking level be?
A) 46 cuffs
B) 52 cuffs
C) 50 cuffs
D) 40 cuffs
C
If annual demand increases by 100%, the average inventory held in a system governed by the EOQ model is:
A) decreased by 100%.
B) increased by 40%.
C) increased 100%.
D) decreased by 50%.
B
Which of these conditions is likely to cause a decrease in the probability of a stockout?
A) lower service level
B) higher demand level variancE
C) lower lead time
D) higher lead time variance
C
The campus bookstore sells 4,000 sets of graduation regalia each year. Placing an order from their supplier costs $25 regardless of order quantity, so they usually place a large order (a half year’s supply) at a time. It costs $5 per year to hold a cap and gown in inventory, primarily insurance costs for the highly flammable material. What is their optimal order quantity?
A) 1,000
B) 2,000
C) 200
D) 150
C
The campus bookstore sells 4,000 sets of graduation regalia each year. Placing an order from their supplier costs $25 regardless of order quantity, so they usually place a large order (a half year’s supply) at a time. It costs $5 per year to hold a cap and gown in inventory, primarily insurance costs for the highly flammable material. What is the total cost (sum of annual holding cost and annual ordering cost) if they order at their optimal order quantity?
A) $1,000
B) $1,650
C) $2,000
D) $1,500
A
The campus bookstore sells 4,000 sets of graduation regalia each year. Placing an order from their supplier costs $25 regardless of order quantity, so they usually place a large order (a half year’s supply) at a time. It costs $5 per year to hold a cap and gown in inventory, primarily insurance costs for the highly flammable material. What is the difference in the total cost (sum of annual holding cost and annual ordering cost) if they order at their optimal order quantity compared to their current policy?
A) $4,550
B) $4,050
C) $5,050
D) $3,550
B
Central Perk orders their organic coffee filters from a South American supplier that mails them as inexpensively (hence, as slowly) as possible. Central Perk uses 80 filters a day with a standard deviation of 5 filters per day. It would be disastrous if they ran out of these filters, years ago customers caught them using paper towels from the men’s room and business suffered. They have set their service level at 99% in hopes of avoiding a similar situation. It takes a fortnight to receive a shipment and the standard deviation of the shipping time is two days. What is their reorder point?
A) 1120 filters
B) 1496 filters
C) 1515 filters
D) 1450 filters
B
Central Perk orders their organic coffee filters from a South American supplier that mails them as inexpensively (hence, as slowly) as possible. Central Perk uses 80 filters a day with a standard deviation of 5 filters per day. It would be disastrous if they ran out of these filters, years ago customers caught them using paper towels from the men’s room and business suffered. They have set their service level at 99% in hopes of avoiding a similar situation. It takes a fortnight to receive a shipment and the standard deviation of the shipping time is two days. What is safety stock they need to carry to meet the 99% service level?
A) 262 filters
B) 350 filters
C) 376 filters
D) 865 filters
C
A local barbecue joint makes one massive batch of potato salad each day. If they run out of this savory side before the end of the day, their last few customers are less than satisfied, but if they make too much, they sell it to the local hog farmer for feed. Every serving costs an equivalent of $0.23 to make, but can be sold for $1.50 to customers and for $0.09 to the hog farmer. The average daily demand is for 200 servings with a standard deviation of 20 servings. How many servings should be made each day?
A) 226
B) 212
C) 240
D) 235
A
The factory produces product and ships it to the distributor. The distributor sends it to the wholesaler when they receive an order. The wholesaler ships the product to the retailer as the retailer requests replenishment. The customer visits the retailer’s bricks and mortar store to purchase the product when they run out. Which of these supply chain members is most likely subjected to the greatest variability in customer demand?
A) wholesaler
B) retaileR
C) factory
D) distributor
C
Given the forecast and booked orders shown in the table; a beginning inventory of 120 units and an MPS of 432 units each in weeks 1, 2 and 3, and an MPS of 576 units in week 4; what is the ATP for period 4? (see chart)
A) 144
B) 108
C) 126
D) 92
C
Given the forecast and booked orders shown in the table; a beginning inventory of 120 units and an MPS of 432 units each in weeks 1, 2 and 3, and an MPS of 576 units in week 4; what is the projected ending inventory for period 4?
A) 34
B) 38
C) 46
D) 22
D
The planning technique that uses the master production schedule to monitor key resource requirements is:
A) resource planning
B) rough-cut capacity planning.
C) handfield planning.
D) horizon planning.
B
Consider the product structure tree shown below:
DIAGRAM
With a beginning inventory of zero for all components and finished items, how many assembly A’s are needed to produce 25 product X’s?
A) 325
B) 125
C) 400
D) 250
A
