ISDS3115 Final Exam

1. Which of the following should be higher in P systems than Q systems? a. Order size b. Demand c. Order spacing d. Safety stock e. Lead time

GOOGLE ANSWER

1. The bullwhip effect refers to the increasing fluctuations in orders that often occur as orders move through the supply chain. a. True b. False

a. True

1. ABC analysis divides on-hand inventory into three classes, generally based upon which of the following? a. The number of units on hand b. Annual dollar volume c. Annual demand d. Item quality e. Item price

b. Annual dollar volume

1. A fried chicken fast food chain that acquired feed mills and poultry farms has performed which of the following? a. Current transformation b. Backward integration c. Horizontal integration d. Job expansion e. Forward integration

b. Backward integration

1. What term is used to describe the outsourcing of logistics? a. Sub-logistics b. E-logistics c. Third-party-logistics (3PL) d. Hollow logistics e. Shipper-managed inventory (SMI)

c. Third-party-logistics (3PL)

1. Hawlett-Packard withholds customization of its laser printers as long as possible. This is an example of which of the following? a. Backward integration b. Vendor-managed inventory c. Standardization d. Timely customization e. Postponement

e. Postponement

1. In MRP, the number of units projected to be available at the beginning of each time period refers to: a. Net requirements b. Planned order releases c. Scheduled receipts d. The amount necessary to cover a shortage e. Projected on hand

e. Projected on hand

1. Which of the following is an advantage of the postponement technique? a. Reduction in training costs b. Reduction in automation c. Better quality of the product d. Early customization of the product e. Reduction in inventory investment

e. Reduction in inventory investment

1. Savings in the supply chain exert more leverage as the firm's net profit margin decreases. a. True b. False

True

1. Which of these is among the demand options of aggregate planning? a. Back-ordering during high demand periods b. Subcontracting c. Varying production rates through overtime or idle time d. Varying workforce size e. Changing inventory levels

a. Back-ordering during high demand periods

1. Which of these aggregate planning strategies is a capacity option? a. Changing inventory levels b. Counter-seasonal product mixing c. Influencing demand by back-ordering d. Influencing demand by extending lead times e. Influencing demand by changing price

a. Changing inventory levels

1. The purpose of safety stock is to: a. Control the likelihood of a stockout due to variable demand and/or lead time. b. Eliminate the likelihood of a stockout due to erroneous inventory tally. c. Replace failed units with good ones. d. Protect the firm from a sudden decrease in demand. e. Eliminate the possibility of a stockout.

a. Control the likelihood of a stockout due to variable demand and/or lead time.

1. Which of the following statements regarding the production order quantity is TRUE? a. It relaxes the assumption that all the order quantity is received at one time. b. It minimizes the total production costs c. It minimizes inventory d. It applies only to items produced in the firm's own production departments. e. It relaxes the assumption that the demand rate is constant.

a. It relaxes the assumption that all the order quantity is received at one time.

1. Which of the following is characteristic of lean operations? a. Low space requirements b. Easy, mindless jobs c. Inventory buffers between each workstation to minimize system downtime d. Specialty workers with no cross-training e. No supplier partnerships

a. Low space requirements

1. How can a reduction of in-transit inventory be encouraged? a. Supplier location near plants b. High setup costs c. Use of trains, not trucks d. Low carrying costs e. Low-cost, global suppliers

a. Supplier location near plants

1. Which of the following statements is true regarding the leverage of supply chain savings? a. Supply chain savings exert more leverage as the firm's net profit margin decreases b. Supply chain savings exert more leverage as the firm's purchases are a smaller percent of sales c. Supply chain leverage is about the same for all individuals d. Supply chain leverage depends only upon the percent of sales spent in the supply chain e. None of the above

a. Supply chain savings exert more leverage as the firm's net profit margin decreases

1. ABC analysis is based upon the principle that: a. More time should be spent on class "C" items because there are many more of them. b. An item is critical if its usage is high c. There are usually a few critical items, and many items that are less critical d. As with grade distributions in many MBA courses, there should be more medium level "B" items than either "A" or "C" items. e. All items in inventory must be monitored very closely

a. There are usually a few critical items, and many items that are less critical

1. Aggregate planning would entail which of the following production aspects at BMW for a 12-month period? a. Number of cars with a hi-fi stereo system to produce b. Number of two-door vs. four-door cars to produce c. Total number of cars to produce d. Number of green cars to produce e. B, C, and D are correct

a. Total number of cars to produce

1. Outsourcing is a form of specialization that allows the outsourcing firms to focus on its key success factor. a. True b. False

a. True

1. Outsourcing refers to transferring a firm's activities that have traditionally been internal to external suppliers. a. True b. False

a. True

1. Which of the following actions is consistent with the use of level scheduling? a. Use inventory to meet demand requirements b. Vary production levels to meet demand requirements c. Use overtime to meet higher-than-average demand requirements d. Vary work force to meet demand requirements e. None of the above

a. Use inventory to meet demand requirements

1. Which of these aggregate planning strategies is a capacity option? a. Using part-time workers b. Promotion c. Counter-seasonal product mixing d. Back ordering e. Changing price

a. Using part-time workers

1. Which one of the following is not a benefit of JIT implementation? a. Variability increase b. Quality improvement c. Cost reduction d. Rapid throughput e. Rework reduction

a. Variability increase

1. Which of the following is not consistent with level scheduling? a. Varying production levels and/or work force to meet demand requirements. b. Using built-up inventory to meet demand requirements. c. Varying the use of subcontracting. d. Finding alternative work for employees during low-demand periods. e. All of the above are inconsistent with the pure level strategy.

a. Varying production levels and/or work force to meet demand requirements.

1. A fast-food retailer that acquired a spice manufacturer would be practicing backward integration. a. True b. False

a. True

1. The supply chain management opportunity called postponement involves delaying deliveries to avoid accumulation of inventory at the customer's site.

False

1. Which of the following is NOT a goal of JIT partnerships? a. Obtain improved quality and reliability b. Removal of in-transit inventory c. Removal of in-plant inventory d. Removal of unnecessary activities e. All of the above are goals of JIT partnerships.

e. All of the above are goals of JIT partnerships.

1. Which of the following is TRUE regarding the steps to reducing setup times? a. The standardization of both tooling and work procedures is advantageous to setup time reduction. b. The cycle of steps is repeated until setup time is reduced to under a minute. c. Move material closer and improve material handling are done before operator training. d. The first step involves performing as much setup preparation as possible while the process/machine is operating. e. All of the above are true.

e. All of the above are true.

1. Low level coding means that: a. The code being used is the code for the lowest level in the BOM structure b. The lowest-paid staff member in the production department performs the coding c. A component item is coded at the lowest level at which it appears in the BOM structure d. The top level of the BOM structure is below level zero and that BOMs are not organized around the finished product e. A final item has only a few levels in the BOM structure

c. A component item is coded at the lowest level at which it appears in the BOM structure

1. Which of the following statements about ABC analysis is FALSE? a. ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings. b. Criteria other than annual dollar volume, such as high holding cost or delivery problems, can determine item classification in ABC analysis. c. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings. d. In ABC analysis, forecasting methods for "C" items may be less sophisticated than for "A" items. e. In ABC analysis, "A" items should have tighter physical inventory control than "B" or "C" items have.

c. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.

1. All EXCEPT which of the following statements about ABC analysis are true? a. ABC analysis is an application of the Pareto Principle. b. ABC analysis categorizes on-hand inventory into three groups based on annual dollar volume. c. ABC analysis suggests that all items require the same high degree level of control. d. ABC analysis suggests that there are the critical few and the trivial many inventory items. e. In ABC analysis, inventory may be categorized by measures other than dollar volume.

c. ABC analysis suggests that all items require the same high degree level of control.

1. Revenue management is most likely to be used in which one of the following situations? a. A firm with a good counter-seasonal product mix b. A dental clinic that wants to fill its appointment book c. An airline attempting to fill "perishable" seats at maximum revenue d. A shipping company that can change its fleet size easily e. A fast food restaurant with wide demand fluctuations during the day

c. An airline attempting to fill "perishable" seats at maximum revenue

1. Enterprise resource planning(ERP) : a. Seldom requires software upgrade or enhancement b. Is inexpensive to implement c. Automates and integrates the majority of business processes d. Does not integrate well with functional areas other than operations e. All of the above

c. Automates and integrates the majority of business processes

1. The rice mill in south Louisiana purchases the trucking firm that transports packaged rice to distributors. This is an example of which of the following? a. Keiretsu b. Backward integration c. Forward integration d. Horizontal integration e. Current transformation

c. Forward integration

1. In the basic EOQ model, if the cost of placing an order doubles and all other values remain constant, the EOQ will: a. Increase by 200% b. Increase, but more data is needed to say by how much c. Increase by about 41% d. Increase by 100% e. Either increase or decrease.

c. Increase by about 41%

1. Which of the following statements is TRUE regarding JIT inventory? a. It hides variability b. It exists just in case something goes wrong c. It is the minimum inventory necessary to keep a perfect system running d. It increases if setup costs decrease e. It is minimized with large lot production

c. It is the minimum inventory necessary to keep a perfect system running

1. JIT makes quality cheaper because: a. The cost of low quality can be hidden as inventory cost. b. JIT adds more buffers to the system c. JIT prevents long runs of defects d. B and C e. A, B, and C

c. JIT prevents long runs of defects

1. When quantity discounts are allowed, the cost-minimizing order quantity: a. May be a quantity below that at which one qualifies for that price. b. Minimizes the unit purchase price. c. Minimizes the sum of holding, ordering, and product costs. d. Is always an EOQ quantity. e. Minimizes the sum of holding and ordering costs.

c. Minimizes the sum of holding, ordering, and product costs.

1. A disadvantage of the fixed-period inventory system is that: a. Additional inventory records are required. b. It involves higher ordering costs than the fixed quantity inventory system. c. Since there is no count of inventory during the review period, a stockout is possible. d. The average inventory level is decreased. e. Orders usually are for larger quantities.

c. Since there is no count of inventory during the review period, a stockout is possible.

1. A grocery store is attempting to implement a Kanban system. Which of the following would not be an application of Kanbans? a. A red light on top of the cashier's lane signals that the cashier need additional change replenished. b. A line of 5 people in the Chinese department signaling the department to heat 5 Crab Rangoon. c. The meat department stocking up on turkeys before thanksgiving. d. An empty doughnut tray signaling the bakery to produce 2 dozen glazed doughnuts. e. All of the above are Kanban applications.

c. The meat department stocking up on turkeys before thanksgiving

1. Dependence on an external source of supply is found in which of the following aggregate planning strategies? a. Varying production rates through overtime or idle time b. Hiring or laying off c. Back ordering during high demand periods d. Subcontracting e. Using part-time workers

d. Subcontracting

1. What directly results from disaggregation of an aggregate plan? a. A capacity-demand matrix b. A transportation matrix c. Detailed work schedules d. A master production schedule e. Priority scheduling

d. A master production schedule

1. Outsourcing: a. Utilizes efficiency that comes with specialization b. Transfers traditional internal activities to outside vendors c. Allows the outsourcing firm to focus on its key success factors d. All of the above are true of outsourcing e. None of the above is true of outsourcing

d. All of the above are true of outsourcing

1. Which choice best describes level scheduling? a. Price points are calculated to match demand to capacity b. Daily production is variable from period to period c. Subcontracting, hiring, and layoffs manipulate supply. d. Inventory goes up or down to buffer the difference between demand and production e. Overtime is used to handle seasonal demand fluctuations.

d. Inventory goes up or down to buffer the difference between demand and production

1. Which of the following is NOT an opportunity for effective management in the supply chain? a. Vendor-managed inventory b. Accurate "poll" data c. Postponement d. Local optimization e. CPFR

d. Local optimization

1. The objective of aggregate planning is to meet forecast demand while _________ over the planning period. a. Minimizing stockout b. Minimizing fixed cost c. Maximizing service level d. Minimizing cost e. All of the above

d. Minimizing cost

1. The transfer of some of what are traditional internal activities and resources of a firm to outside vendors is: a. Keiretsu b. A standard use of the make-or-buy decision. c. Offshoring d. Outsourcing e. Not allowed by the ethics code of the supply Management Institute.

d. Outsourcing

1. What is the practice of keeping a product generic as long as possible before customization? a. Vendor-managed inventory b. Forward integration c. Backward integration d. Postponement e. Keiretsu

d. Postponement

1. Which of the following should be higher in P systems than Q systems? a. Demand b. Lead time c. Order spacing d. Safety stock e. Order size

d. Safety stock

1. Which of the following statements about quantity discounts is FALSE? a. In inventory management, item cost becomes relevant to order quantity decisions what a quantity discount is available. b. If carrying costs are expressed as a percentage of value, EOQ is larger at each lower price in the discount schedule. c. The cost-minimizing solution may or may not be where annual holding costs equal ordering costs. d. The larger the annual demand, the less attractive a discount schedule will be. e. The smaller the ordering cost, the less attractive a discount schedule will be.

d. The larger the annual demand, the less attractive a discount schedule will be.

1. Which choice below best describes the counter-seasonal product demand option? a. The breaking of the aggregate plan into finer levels of detail b. Producing such products as lawnmowers and sunglasses during the winter c. Using subcontractors only d. Lowering prices when demand is slack e. Developing a mix of products that smoothes out their demands

e. Developing a mix of products that smoothes out their demands

1. Kanban is associated with all EXCEPT which of the following? a. Small lot sizes b. Reductions in inventory c. Signals such as cards, lights, or flags d. Moving inventory only as needed e. Increased material handling

e. Increased material handling

1. The main trait of a single-period model is that: a. The cost of a shortage cannot be determined accurately b. Supply is limited c. It has the largest EOQ sizes d. The order quantity should usually equal the expected value of demand e. Inventory has limited value after a certain period of time

e. Inventory has limited value after a certain period of time

1. Characteristics for just-in-time partnerships do NOT include: a. Focus on core competencies b. Long-term contracts c. Removal of in-transmit inventory d. Produce with zero defects e. Large lot sized to save on setup costs and to gain quantity discounts

e. Large lot sized to save on setup costs and to gain quantity discounts

1. Which of the following is NOT an advantage of level scheduling? a. Lower absenteeism b. Stable employment c. More employee commitment d. Lower turnover e. Matching production exactly with sales

e. Matching production exactly with sales

1. Local optimization is a supply-chain complication best described as: a. The result of supply chains built on suppliers with compatible corporate cultures. b. Obtaining very high production efficiency in a decentralized supply chain. c. The opposite of the bullwhip effect. d. The prerequisite of global optimization. e. Optimizing one's local are without full knowledge of supply chain needs.

e. Optimizing one's local are without full knowledge of supply chain needs.

1. Which of the following is a characteristic of a JIT partnership? a. Third-party logistics never used b. Maximal product specifications imposed on supplier c. Frequent deliveries in large lot quantities d. Active pursuit of vertical integration e. Removal of incoming inspection

e. Removal of incoming inspection

1. In aggregate planning, which one of the following is not a basic option for altering demand? a. Personal selling b. Pricing c. Back-ordering d. Promotion e. Subcontracting

e. Subcontracting

1. Which of the following aggregate planning options is NOT associated with manipulation of product or service demand? a. Advertising b. Counter-seasonal products or services c. Price cuts or discounts d. Promotion e. Subcontracting

e. Subcontracting

1. A restaurant runs a special promotion on lobster and plans to sell twice as many lobsters as usual. When this large order is sent to the distributer, the distributer assumes the large size is a trend, not a one-time event. The distributor therefore places an even larger order with the lobsterman. This behavior is the result of which of the following? a. Vendor-managed inventory b. Postponement c. CPFR d. Double marginalization e. The bullwhip effect

e. The bullwhip effect

1. A disadvantage of the "Few suppliers" sourcing strategy is: a. The suppliers are less likely to understand the broad objectives of the procuring firm and the end customer. b. The risk of not being ready for technical college c. The lack of cost savings for customers and suppliers d. Possible violations of the Sherman Antitrust Act e. The high cost of changing partners

e. The high cost of changing partners

1. What is the primary purpose of the basic economic order quantity model shown below?: Q*=sqrt[(2DS)/H] a. To minimize the sum of carrying cost and holding cost b. To calculate the optimum safety stock c. To maximize the customer service level d. To calculate the reorder point, so that replenishments take place at the proper time e. To minimize the sum of setup cost and holding cost

e. To minimize the sum of setup cost and holding cost

1. Which of the following statements about aggregate planning is true? a. In aggregate planning, back orders are a means of manipulating supply while part-time workers are a way of manipulating product or service demand. b. A pure chase strategy allows lower inventories when compared to a pure level strategy c. A disadvantage of subcontracting is that it may require skills or equipment outside the firm's areas of expertise. d. The option of varying workforce size by hiring or layoffs is used where the size of the labor pool is small. e. An advantage of the counter-seasonal product and service mixing option is that it matches seasonal fluctuations without hiring/training costs.

b. A pure chase strategy allows lower inventories when compared to a pure level strategy

1. Which of these statements about the production order quantity model is FALSE? a. Average inventory is less than one-half of the production order quantity. b. All else equal, the smaller the ratio of demand rate to production rate, the larger is the production order quantity. c. Because receipt is non-instantaneous, some units are used immediately and not stored in inventory. d. The production order quantity model is appropriate when the assumptions of the basic EOQ model are met, except that receipt is non-instantaneous. e. None of the above are false.

b. All else equal, the smaller the ratio of demand rate to production rate, the larger is the production order quantity.

1. Concerning relationships with suppliers, which of the following combinations is critical to the success of JIT? a. Close relationship with skepticism b. Close relationship with trust c. Distant relationship with trust d. Distant relationship with skepticism e. None of the above

b. Close relationship with trust

1. The supply chain management opportunity called postponement involves delaying deliveries to avoid accumulation of inventory at the customer's site. a. True b. False

b. False

1. Which of the following is NOT one of the successful techniques for controlling the cost of labor in services? a. Accurate scheduling of labor hours to assure quick response to customer demand b. Little flexibility in worker hours to decrease the burden on management c. An on-call labor resource that can be added or deleted to meet unexpected demand d. Flexibility of individual worker skills that permits reallocation of available labor e. Flexibility in rate of output or hours of work to meet changing demand

b. Little flexibility in worker hours to decrease the burden on management

1. Which of the following lot-sizing techniques results in the lowest holding costs? a. EOQ b. Lot-for-lot c. POQ d. Wagner-Whitin algorithm e. The quality discount model

b. Lot-for-lot

1. Which of the following statements regarding aggregate planning is TRUE? a. In a pure level strategy, production rates or work force levels are adjusted to match demand requirements over the planning horizon. b. Mixed strategies in aggregate planning may utilize inventory, work force, and production rate changes over the planning horizon. c. Because service firms have no inventory, the pure chase strategy does not apply. d. A disadvantage of the option of changing inventory levels is that it forces abrupt production changes. e. A pure level strategy allows lower inventories when compared to pure chase and hybrid strategies

b. Mixed strategies in aggregate planning may utilize inventory, work force, and production rate changes over the planning horizon.

1. Aggregate planning for service firms that provide intangible output deals mainly with: a. Smoothing the production rate and finding the optimal size of the workforce. b. Planning for human resources requirements and managing demand. c. Centralized purchasing d. Capital investment decisions e. Centralized production

b. Planning for human resources requirements and managing demand.

1. Which of the following statements regarding a pull system is TRUE? a. Large lots are pulled from upstream stations. b. Problems become more obvious. c. Work is pulled to the downstream stations before it is actually needed. d. Manufacturing cycle time is increased e. None of the above are true regarding a pull system.

b. Problems become more obvious.

1. In level scheduling, what is kept uniform from month to month? a. Demand levels b. Production/workforce levels c. Inventory levels d. Product mix e. Sub-contracting levels

b. Production/workforce levels

1. Which of the following is generally found in most lean environments? a. A push or pull system, depending upon the rate of demand b. Pull systems c. Push systems d. A push system for high margin items and a pull system for low margin items e. A push system for purchased parts and a pull system for manufactured parts

b. Pull systems

1. The proper quantity of safety stock is typically determined by: a. Using a single-period model. b. Setting the level of safety stock so that a given stockout risk is not exceeded. c. Minimizing total costs d. Carrying sufficient safety stock so as to eliminate all stockouts e. Multiplying the EOQ by the desired service level.

b. Setting the level of safety stock so that a given stockout risk is not exceeded.

1. In the service sector, which of the following aggregate planning strategies might direct your client to a competitor? a. Varying work force size by hiring or layoffs b. Subcontracting c. Changing inventory level d. Varying production rates through overtime or idle time e. Using part-time workers

b. Subcontracting

1. Which one of the following statements is true about the Kanban system? a. The supplier workstations signals the customer workstation as soon as a batch is completed b. The customer workstation signals to the supplier when production is needed c. It is useful to smooth operations when numerous quality problems occur d. It is associated with a push system The quantities in the containers are usually large to reduce setup costs

b. The customer workstation signals to the supplier when production is needed

1. What is one of the tools that is particularly useful in reducing system nervousness in a MRP system? a. Modular bills b. Time fences c. Lot sizing d. Time phasing e. Closed loop system

b. Time fences

1. Manufacturing cycle time is best defined as the: a. Time between the start of one unit and the start of the next unit b. Time form raw materials receipt to finished product exit c. Time it takes a unit to move from one workstation to the next d. Sum of all the task times to make one unit of a product e. Length of the work shift, expressed in minutes per day.

b. Time form raw materials receipt to finished product exit

1. Which of the following statements is TRUE about the MRP plan when using lot-for-lot ordering? a. The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent. b. The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent. c. The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent. d. The quantity of gross requirements for a child item is equal to the quantity of planned order release(s) multiplied by the number of child items used in the parent assembly. e. All of the above are true.

d. The quantity of gross requirements for a child item is equal to the quantity of planned order release(s) multiplied by the number of child items used in the parent assembly.

1. An advantage of the fixed-period inventory system is that: a. Orders usually are for smaller order quantities b. No inventory records are required c. The average inventory level is reduced d. There is no physical count of inventory items when an item is withdrawn. e. Safety stick will be lower than it would be under a fixed-quantity inventory system.

d. There is no physical count of inventory items when an item is withdrawn.

1. The two most basic inventory questions answered by the typical inventory model are: a. Ordering cost and carrying cost b. Timing of orders and cost of orders c. Order quantity and cost of orders d. Timing of orders and order quantity e. Order quantity and service level

d. Timing of orders and order quantity

1. Which of the following would NOT generally be a motive for a firm to hold inventories? a. To decouple various parts of the production process b. To provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand c. To take advantage of quantity discounts d. To minimize holding costs e. To hedge against inflation

d. To minimize holding costs

1. Which of the following aggregate planning strategies is known to lower employee morale? a. Back-ordering during high demand periods b. Changing inventory levels c. Yield management d. Varying work force size by hiring or layoffs e. Counter-seasonal product and source mixing

d. Varying work force size by hiring or layoffs

1. In the basic EOQ model, if D = 6000 per year, S = $100, and holding cost = $5 per unit per month, what is the economic order quantity? a. 490 b. 24 c. 100 d. 600 e. 141

e. 141

1. The fixed-period inventory system requires more safety stock than a fixed-quantity system because: a. Setup costs and holding costs are large. b. This model is used for products that require very high service levels. c. Replenishment is not instantaneous. d. This model is used for products that have large standard deviations of demand. e. A stockout can occur during the review period as well as during lead time.

e. A stockout can occur during the review period as well as during lead time.

1. Which of the following statements about the basic EOQ model is TRUE? a. If annual demand were to double, the number of orders per year would increase. b. If the carrying cost were to increase, the EOQ would fall. c. If annual demand were to double, the EOQ would increase. d. If the ordering cost were to double, the EOQ would rise. e. ALL of the above statements are true.

e. ALL of the above statements are true.

1. Which of the following is an element of inventory holding costs? a. Housing costs b. Investment costs c. Material handling costs d. Pilferage, scrap, and obsolescence e. Al of the above are elements of inventory holding costs

e. Al of the above are elements of inventory holding costs

1. Which of the following is consistent with a pure chase strategy? a. Little or no use for inventory to meet demand requirements b. Vary work force to meet demand requirements c. Vary production levels and work force to meet demand requirements d. Vary production levels to meet demand requirements e. All of the above are consistent with a pure chase strategy

e. All of the above are consistent with a pure chase strategy

1. The bullwhip effect: a. Increases the costs associated with inventory in the supply chain. b. Occurs as orders are relayed from retailers to distributers to wholesalers to manufacturers. c. Results in increasing fluctuations at each step of the sequence. d. Occurs because of distortions in information in the supply chain. e. All of the above are true.

e. All of the above are true.

1. Which of the following aggregate planning strategies is a demand option? a. Using part-time workers b. Changing inventory levels c. Subcontracting d. Varying production levels e. Changing price

e. Changing price