MDIST_lec_2

What is demand in global business?

• Predictable

• Unpredictable

• Crucial

• All of the above

What is a demand profile used to determine?

• Market trends

• Resource needs

• Customer demographics

• Revenue potential

In a 'Make-To-Order' policy, what resource type is acquired only on receipt of a customer order?

• Transformed resources

• Transforming resources

• Both

• Neither

What is the main purpose of a 'Resource-To-Order' system?

• Increase stock levels

• Activate resources upon order receipt

• Decrease production time

• Forecast demand accurately

What does the P ratio compare in an operations planning context?

• Production cost and demand cost

• Time for production and demand fulfillment

• Resources and time

• Demand and supply

How can inventory protect a business?

• By decreasing costs

• By allowing faster production

• By guarding against stock-outs

• By increasing demand

Which of the following is NOT a function of inventory?

• Smooth production

• Decouple operations

• Increase revenue

• Protect against stock-outs

What is the primary objective of inventory control?

• Reduce production time

• Meet demand

• Balance customer service and inventory costs

• Increase turnover

What does ABC classification in inventory entail?

• Allocation based on size

• Allocation based on importance

• Allocation based on demand

• Allocation based on cost

In an inventory model, which cost represents the cost of storing an item?

• Holding cost

• Ordering cost

• Setup cost

• Purchase cost