Aggregation reduces the standard deviation of demand-

d. Only if demand across the regions being aggregated is perfectly positively

correlated

The loss incurred by a firm for each unsold unit at the end of the selling season is-
b. The cost of overstocking the product

Inventory carried for the purpose of satisfying demand that exceeds the amount
forecasted for a given period is:
Select one:book page 350. section 12.1.
b. Safety inventory.

Business travellers generally show-

Select one:
a. Low sensitive to price and High sensitive to duration/flexibility

A high level of product availability requires-

Select one:
e. Large inventories and tends to raise costs for the supply chain

Average flow time resulting from cycle inventory is equal to:

book page 303 third last line.
b. Cycle inventory/Demand = Q/(2D)

The fraction of replenishment cycles that end with all the customer demand being
met is the-
Select one:book page 354 first two lines
a. Cycle service level (CSL)

Which one of the following is correct?

Select one:book page 62 inventory related metrics
a. Average inventory = cycle inventory/(cycle inventory + safety inventory) OR
average inventory = cycle inventory + safety inventory

As compared with a decentralised distribution system, the centralised distribution

system generally requires has-
Select one:
e. Higher inventories
Lower inventories

Normally functional products have-

Select one:
e. Highly predictable demand

The use of one product to satisfy demand for a different product is-
Select one:book page 373
a. Product substitution

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 A contract that allows a retailer to return unsold inventory up to a specified amount,
at an agreed upon price is:
Select one:book page 500 -
b. Buyback contract.

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-
e. Periodic review

Which of the following adjusts the pricing and available supply of assets and has a
significant impact on supply chain profitability.
Select one:book page 266 section 9.1
c. Supply and demand management.
Revenue Management
Refer 16.1 – revenue management definition was given exactly as the heading of the
question

Continuous review policies for inventory replenishment require safety inventory to

cover demand during-
b. Both lead time and the review interval
Lead time
Book extracts from chapter 12 under continuous policy review - A manager using a continuous review
policy has to account only for the uncertainty of demand during the lead time. This is because the continuous
monitoring of inventory allows the manager to adjust the timing of the replenishment order, depending on the
demand experienced.

Economies of scale in purchasing and ordering motivate a manager to:

Select one:
d. Increase the lot size and cycle inventory.

Lead time is the gap between-

Select one:
a. When an order is placed and when it is received

Which of the following risks is not unique to International supply chains?

Select one:
a. Currency fluctuations
I am not sure here and would vote for Natural disaster, appreciate your feedback.

When demand is steady, cycle inventory and lot size are related as:
d. Cycle inventory = Q/2

A company that tracks inventory and places an order for a lot size Q when the
inventory declines to the reorder point (ROP) is using-
Select one:
c. Continuous review

the fraction of product demand that is satisfied from product in inventory is:
e. Order fill rate.
Product fil rate

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 Normally Innovative products have-
Select one:
c. Fast product clock speed
Low predictable demand

Which of the following is not a differential pricing strategy?

Select one:
a. Cost-based pricing
b. Time-based pricing
c. Regional pricing
d. Channel pricing
e. Group pricing

Which transportation network design option establishes an extra layer between

suppliers and retailers to store inventory and to serve as a transfer location?
Select one: e. All shipping via central DC.

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