front 1 A company which produces electricity, like Progress Energy, is considering buying extra coal to hold in inventory. They want to buffer against a potential strike at a major coal producer which would likely result in a significant price increase. | back 1 Hedging |
front 2 Companies hold safety stock inventory due to | back 2 uncertainty in supply or demand. |
front 3 "Any idle resource held for future use dash– those stocks or items used to support production (raw materials), supporting activities (drill bits) and customer service (finished goods, spare parts)" | back 3 inventory |
front 4 A men's suit is composed of primary material, lining, thread, buttons, and a zipper. A zipper is an | back 4 Dependent Demand item |
front 5 The cost and value of inventory increase as materials move down the supply chain. One way operations and supply chain managers counteract the negative aspect of this fact is by | back 5 inventory pooling. |
front 6 Not an remedy for the Bullwhip effect | back 6 Offering large volume price discounts to distributors and retailers. |
front 7 The owner of a vending machine company has weekly stops to check the soda machine at NC State. She checks the inventory levels and fills the machine back up to its full restocking level.She is using which of the following types of independent demand inventory systems? | back 7 periodic review system |
front 8 Which of the following is a characteristic of the Continuous Review Model for inventory management? | back 8 Will have less safety stock inventory than a periodic review model |
front 9 Franklin BBQ is open 7 days per week. Joe Bob reorders pickles every Monday for delivery on Wednesday. Average daily demand is 10 gallons with a standard deviation of 2 gallons per day. What is the standard deviation of demand for pickles during the review period plus the lead time (e.g., uncertainty period)? (Select the nearest number) | back 9 6 GALLONS |
front 10 Franklin BBQ operates 50 weeks per year. Weekly demand averages 30 beef briskets per week with a standard deviation of 6 briskets. Ordering costs are $25 and annual inventory holding cost is $4 per brisket. Delivery lead time from the vendor is 2 weeks. How many briskets should Joe Bob order to minimize his costs? (Select the nearest number) | back 10 137 briskets |
front 11 Silly Sally sells sea shells at the Sea Shore Store. The average and standard deviation of demand during replenishment lead time is 60 and 10 units, respectively. Sally sipped Sangria at the Silver Spoon Saloon and forgot to place a replenishment order. If Sally places an order at the end today when she has 65 units on hand, what is the probability she doesn't run out of sea shells before the replenishment arrives? | back 11 69% |
front 12 Guadalupe sells imported watches from Germany on his e-commerce website. He wants to determine the Economic Order Quantity for his best selling watch. Which of the factors below is not relevant to this decision? | back 12 Replenishment lead time. |
front 13 Hart's Floral Shop sells bouquets for special occasions. Annual demand is 500 bouquets, the company's cost to place an order with its vendor is $25, and the cost to hold a bouquet in inventory for a year is $15. If Hart orders from its vendor in quantities of 45 bouquets, what is the total annual inventory holding cost? Choose the closest number. | back 13 338 |
front 14 Diamond Hardware Store sells picture-hanging kits. Annual demand is 4,000 kits. The cost to place an order from Diamond's vendor is $50 and the holding cost is $10 per kit per year. If diamond orders in quantities less than 150 units, each kit costs $2.00. If orders are between 150 and 249units, each kit costs $1.75. If diamond orders greater than 250 units, the price is $1.50 per kit. How many kits should Diamond order to minimize costs? | back 14 250 |
front 15 Assume the standard deviation of demand per week is 8 units and replenishment lead time is 4 weeks. What is the standard deviation of demand during lead time? | back 15 16 units |
front 16 In 2014 Wal-Mart Stores held $43,858 million dollars of inventory. Annual inventory holding costs are approximately 25% of item value. Assume that during your summer internship, you invented an improved forecasting model that reduced Wal-Mart's inventory level by 1% without lowering the service level. How much would this save Wal-Mart each year? (Pick the closest number) | back 16 $109.645 million |
front 17 Which of the following is not a component of inventory holding cost? | back 17 Sales expenses on inventory |
front 18 On December 31, 2014 Wal-Mart Stores reported total 2014 revenues of $476,294,000,000. On hand inventory was $43,858,000,000 and total assets were $204,751,000,000. What was the inventory turnover for 2014? (Pick the closest number) | back 18 10.9 turns |
front 19 Mertle Mouse sells Swiss cheese gift sets at the airport. She buys the gift sets from a supplier in Wisconsin. The average and standard deviation of demand during replenishment lead time are 45 and 15 units, respectively. What would be the reorder point for a 97% probability of not stocking out during replenishment lead time? (Select the closest number.) | back 19 73 units |
front 20 What is the Z value for an 85% service level? | back 20 1.04 |
front 21 Some companies want their supply chain partners (suppliers) to co-locate, i.e., move as close as possible to them. This would reduce | back 21 Transportation Inventory |
front 22 The type of demand which comes from outside the organization, is unpredictable, and usually forecasted is | back 22 Independent |