Question:

Bakeryproducesalargebatchofbreadeverymorning, sellsitthroughouttheday(without baking more), and discards any leftovers at the end of each day. If it takes the average ofhistorical sales, then this would give an of true demand. Baking batches would helpitbetterlearndemand. Whichwordsshould gointheblanks?

a. underestimate,smaller

b. underestimate,larger

c. overestimate,smaller

d. overestimate,larger

Question: Whenprocuringdurablegoodsprimarilyfromasupplier withalongleadtime,whichofthefollowingchangeswouldNOTincreasesafetystockrequirements?

a. Findinganemergencysupplier todualsource from

b. Increaseduncertaintyintheleadtime

c. Unreliabilityofthesupplier tohave100%fillrate

d. Increasedbatchsizes

Question: Aproduct categorywithalowerdegree ofsubstitutionbetween productswillhavea tailofinventory,anda supply-demandmismatchcost. Whichwordsshould gointheblanks?

a. longer, greater

b. longer,lesser

c. shorter,greater

d. shorter,lesser