1.ABC analysis is based upon the principle that:

1. There are usually a few critical items, and many items which are less critical
2. All items in inventory must be monitored very closely
3. An item is critical if its demand is higher than that of the other items in stock
4. The ROP (in terms of volume) should be higher for c items than for b items
5. An item is critical if its price per unit is the highest compared to the other items in stock

2. Which of the following is an example of competing on quick response?

1. A firm's products are delivered to customers faster than its competitors
2. A firm produces its product with less raw material waste than its competitors
3. A firm offers more innovative products than its competitors
4. A firm's research and development department generate many ideas for new products
5. A firm advertises more than its competitors

3.The following Supply Chain Management technologies and strategies help reduce the bullwhip effect except:

1. ROP
2. CPFR
3. ABC analysis
4. 3PL
5. both (c) and (d

4. In the make-or-buy decision, one of the reasons for buying is:

1. To minimize the setup cost in inventory management
2. To increase the risk of unethical production
3. To remove supplier collusion
4. To avoid reciprocity
5. None of the above

5. An inventory decision rule at Carrefour states "when the inventory level goes down to 12 gearboxes, 700 gearboxes will be ordered". Which of the following statements is true?

1. The reorder point is 700 units, and 12 is the EOQ.
2. Twelve is the reorder point, and 700 is the order quantity.
3. The number 700 depends only on the demand during lead time.
4. Twelve is the number of orders per year, and 700 is the reorder point.
5. None of the above