A. The use of a local supplier has lowered the fixed cost of transport (per batch) for a retailer by 75%. Assuming that the optimal batch size is adjusted accordingly, which of the following statements is true?

Group of answer choices

1) The time between orders will decrease

2) The time between orders will increase

3) The time between orders will stay the same

B) After Amazon purchased Diapers.com, sales of diapers increased as a fraction of total Amazon sales. As a result of this acquisition, I expect;

Inventory Turns at Amazon to have (1. Increase or 2. decrease or 3. remains unchanged)?

and Transportation cost per dollar of sales at Amazon to have (1. Increase or 2. decrease or 3. remains unchanged)?

C) Which of the following statements is true?

Group of answer choices

1. If two products have the same coefficient of variation, they must hold the same number of days of safety inventory (irrespective of standard deviation), if they want the same CSL.

2. If two products have the same coefficient of variation, the product with the higher standard deviation must hold more days of safety inventory if they want the same CSL.

3. If two products have the same standard deviation, they must hold the same number of days of safety inventory, if they want the same CSL.

D) Consider two products: Product X has transportation cost per unit which is a large fraction of unit cost and Product Y has transportation cost as a small fraction of unit cost. In which of the two cases would you prefer a distribution network with fewer facilities?

a) Product X

b) Product Y

c) Both should have the same number of facilities