study exam

C&A has on average $6,000 in inventory and its daily sales are $200. What are C&A's weekly inventory turns (assuming demand occurs seven days a week)?

0.23 Weekly inventory turns = (Net sales/Average inventory)*7 = (200/6000)*7 = 0.23

C&A makes two types of products using four machines from 9 a.m. to 5 p.m. each day. Product A visits machines 1, 2, and 4. Product B only visits machines 1 and 3. The capacity is 0.4 unit per minute at machine 1, 0.12 unit per minute at machine 2, 0.2 unit per minute at machine 3, and 0.3 unit per minute at machine 4. The demand per day is 40 units for Product A and 160 units for Product B. What is the implied utilization for machine 1?

1.04

A store has the following demand figures for the last four years: Year Demand 1 | 100 2 | 150 3 | 98 4 | 112 What is the exponential smoothing forecast for year 5? Use alpha = 0.3 and a forecast for year 2 of 100.

110.5

C&A purchases fertilizer for its lawn-care business from a supplier who charges $30 per order and $50 per case. Each case consists of five bags of fertilizer. C&A needs 2,000 bags of fertilizer a year. C&A's annual holding costs are 30%. What is C&A's holding cost per case per year?

15

Store A purchases cases of fertilizer for its lawn-care business from a supplier who charges Store A $30 per order and $50 per case. Each case consists of five bags of fertilizer. Store A needs 2,000 bags of fertilizer a year. Store A's annual holding costs are 30%. If Store A's order quantity is 40 cases, what is its average inventory level?

20

C&A purchases cases of fertilizer for its lawn-care business from a supplier who charges C&A $30 per order and $50 per case. Each case consists of five bags of fertilizer. C&A needs 2000 bags of fertilizer a year. C&A's annual holding costs are 30%. How many cases of fertilizer should C&A order from its supplier with each order to minimize the total ordering and holding cost?

40

Two types of customers are served by a two-step process. Each resource is staffed by one employee. Customer A spends two minutes at resource X and five minutes at resource Y. Customer B spends five minutes at resource X and two minutes at resource Y. The demand rate per hour is 10 customer As and 15 customer Bs.What is the workload for resource X across all customer typ

95 minutes per hour

Bakery A uses 60 bags of flour each month. The flour is purchased from a supplier for a price of $80 per bag and an ordering cost of $20 per order. Bakery A's annual inventory holding cost percentage is 40%. If Bakery A chooses to use the economic order quantity for flour purchases, what will be the total of its holding and ordering costs per year?

960

Which of the following is a reason for batching?

Fixed costs associated with starting the process

Computers lose value as they are stored in inventory. This is an example of which component of a firm's inventory holding cost?

Obsolescence cost

A delivery truck from a food wholesaler has just delivered fresh meat and produce to a local restaurant. This meat and produce would be categorized as which type of inventory by the restaurant?

Raw materials inventory

Two methods are used to predict how many customers will call in for help in the next four days. The first method predicts the numbers of callers to be 23, 5, 14, and 20 for the four respective days. The second method predicts 20, 13, 14, and 20 for the four respective days. The actual numbers of callers turn out to be 23, 10, 15, and 19. Which method has the smaller mean absolute error (MAE)?

The first method

Which reason for holding inventory guards against a reduction in the flow rate when one assembly station is disrupted in a production line?

buffers

The EOQ minimizes the sum of the ordering cost and which of the following costs?

holding cost

Inventory turns and days-of-supply measure _______ items remain in __________.

how long, inventory

A firm evaluates its EOQ quantity to equal 180 cases, but it chooses an order quantity of 200 cases. Relative to the order quantity of 180 cases, the order quantity of 200 cases has

lower ordering cost and higher holding cost.

Which of the following flow units is probably best to use if a process has flow-dependent processing times?

minutes of hours of work

Product A's annual inventory turns is 8 and product B's annual inventory turns is 5. Which product spends more time in inventory on average?

product B

Inventory can be measured in many ways EXCEPT in ______.

profit

The intuition behind the MAE metric to evaluate old forecasts is

to average the absolute values of the forecast errors.

Using the exponential smoothing forecast, is it possible to forecast a demand that is bigger than any previously observed demand?

yes