Supply Chain Multiple Choice Questions and Inventory Management Problems

Multiple Choice Questions

Task:

Indicate the correct answer for each of the multiple choice questions below. (2 marks each)

1.A decoupling point is where inventory is carried and allows the “upstream” part of the supply chain to operate

a.relatively dependent on the “downstream” part.
b.relatively independent of the “downstream” part.
c.relatively independent of operational needs.
d.none of the above

2.For a car manufacturer, the demand for transmissions is considered

a.dependent demand.
b.independent demand.
c.decoupling.
d.inventory redundancy.

3.Four jobs must be processed through two machines. Each job must be processed on machine #1 before it can processed on machine #2. The following table gives the processing times for the jobs in hours:

4.Four Jobs must be processed through a single workcentre. The following table gives the processing times and due dates of the jobs:


Part II: Problems/Discussion Questions

1.The Outdoor Company estimated that they will require 14,000 boxes of hiking supplies over the next year. Administrative and other costs associated with placing an order are estimated to be $23 per order. The Hiking Company uses a rate of 12% per year for calculating inventory holding costs.

The Outdoor Company’s supplier encourages its customers to order in large quantities by offering a price break on volume. Hence, the price per box depends on the order quantity as follows.

Part II: Problems/Discussion Questions

1.The Outdoor Company estimated that they will require 14,000 boxes of hiking supplies over the next year. Administrative and other costs associated with placing an order are estimated to be $23 per order. The Hiking Company uses a rate of 12% per year for calculating inventory holding costs.

The Outdoor Company’s supplier encourages its customers to order in large quantities by offering a price break on volume. Hence, the price per box depends on the order quantity as follows.