Please answer correctly all of them!
Muitiple Choice Questions 1. Groceries-R-Us (C-R-U) is currently implementing a contimusus review policy for the extra-brigh toothpaste an its Dallas distrihution center. Average daily demand for toahpaste is 100 eases with a standard deviation of 20 cases. The toothpaste supplier has a delivery lead time of 4 days. If the reiailer is using a re-order point of 442 , what is the in-stock probability durng the delivery lead time before the next shipment atrives? a. About 5% b. About 75\% c. About 15% d. About 25\% c. About 85\% 2. Groceries-R-Us (G-R-U) is currently implementing a continuous review policy for the extra-bright toothpante at its Dalias distribution center. Average daily demand for toothpaste is 100 cases with a standard deviation of 20 cases. The toothpaste supplier to G-R-U has a delivery lead time of 4 days. The current inventory management poliey provides a 70% service level (in-stock probability). If the retailer decides to triple the eurrent safety stock level. what will be the new service level? a. About 94% b. About 8.5\% c. About 75\% d. About 6% e. About 15% 3. In a newsvendor setting, if the unit cost of underage is greater than the unit cost of overage, which one of the following is true: a. Optimal order quantity is greater than the median demand b. Optimal order quantity is equal to the median demand c. Optimal order quantity is less than the median demand d. Need more info. 4. Consider two products A and B that have identical unit cost, retail price and demand parameters and the same short selling season (the summer months from May through August). The newsvendor model is used to manage inventory for both products. Product A is to be discontinued at the end of the season this year, and the leftovers will be salvaged at 85% of the unit cost. Product B will be re-offered next summer, so any leftovers this year can be carried over to the next year while incurring a cost of capital of 18%. Which one of the following statements is true? a. Stocking quantity of product A is lower than stocking quantity of product B b. Stocking quantity of product A is higher than stocking quantity of product B c. The stocking quantity of both products will be identical. d. Need more info. 5. In The Goal, which one of the following interventions DID NOT increase the plant throughpuL: a. Move quality inspection in front of the NCX-10 machine b. Release materials so that the robots were always busy c. Pre-load runs for the heat treat furnace d. Stagger breaks for workers staffed to the NCX-10 machine e. None of the above. 6. Company A's supply chain has four times the inventory turns of Company B's supply chain. What is a correet statement? a. Company B's supply chain has four times the inventory of Company A's supply ehain. b. Company A's supply chain has 1/4th the flow time of Company B's supply chain. c. Company A's supply chain has four times the inventory of Company B's supply chain. d. Company B's supply chain has 1/4th the flow time of Company A's supply chain. e. None of the above 7. In The Goal, which of the following IS NOT something that Alex learned during his hiking trip with his son. a. Bottleneck (the slowest moving/processing) resource determines the process capacity (speed of the hiking group). b. To increase process capacity (to get the group move faster), one needs to remove load from the bottleneck and distribute it to non-bottleneck resources. c. Moving the bottleneck to the front of the line speeds up the process. d. Even if the process is balanced, when there are statistical fluctuations, the overall process capacity would suffer due to dependencies in the production process. e. None of the above. 8. A retailer estimates her fixed cost per shipment of an order at $1280. Presently, she orders in optimal quantities of 400 units per shipment. Due to increased automation, she is expecting her fixed cost per shipment to reduce to $320. If she still wants to optimize her annual average inventory holding and ordering costs, how should she change her ordering quantity? a. 100 b. 200 c. 800 d. 1600 e. No need to change the order quantity. 9. A retailer is using a continuous review model to manage inventory, and is currently ordering 3000 units for shipment. If her annual average ordering cost is less than her annual average inventory holding cost, which the following statements is true? a. She is currently ordering more than the EOQ b. She is currently ordering less than EOQ c. She is currently ordering EOQ d. Need more info 10. In the Goal, on a camping trip. Alex observes several kids playtng a manch game around the eamp-tire. ARer this experience, Alex recognizes which one of the factor(s) to influence hin factory process capacity" a. Bottleneck b. Variabitity c. Dependency between process steps d. Herbie e. A and D f. B and C S. A and C. 11. Consider a Chick fil A Drive-Thru restaurant at a busy time of the day (like 12:00 pm or 5:00pm ). A Chick Fil A employee takes customer orders and payment while cars are still waiting in the line, Customer picks up the order from the kitchen window. While ordering taking and payment takes about 1 min per customer, the kinchen on average takes 4.5min to get an order ready. Suppose on a typical busy time, when a new custorner arrives, there are typically 5 cars in the Drive-Thru line ahead either placing an order, waiting or just about to pick up their food from the kitchen window. What is the average flow time of a car just joining the Drive-Thru lire? a. 3.5min b. 27min c. 20min d. 31.5min e. 22.5min 12. McKinsey and Co. hires 50 associates per year in the Dallas office. Each hired associate stays with the office for 1.5 years before being considered for promotion to senior associate level. About 70% of the associates who are up for promotion leave McKinsey \& Co. after 1.5 years. At any point in time, on average, how many associates are there in the Dallas office? a. 25 b. 100 c. 50 d. 75 e. Need more info
