Questions 1-5 pertain to Susan's aquatic center at Oakton, Virginia

Susan manages the aquatic center. She uses 40000 bulbs during the course of a year.

The following information is known about the bulbs:

Annual demand: 40000

Holding cost per bulb per year: $1.50

Setup cost per order: $18.75

Working days per year: 250

1. Given the above information, what would be the economic order quantity EOQ of the aquatic center?

1. 1,000,000
2. 500
3. 40,000
4. 1,000
5. 200

1. What is the average inventory at the aquatic center?

1. 1000
2. 500
3. 40,000
4. 20,000
5. 365

1. How many orders would be made each year at the aquatic center?

1. 1000
2. 40,000
3. 40
4. 500
5. 365

1. What is the total annual inventory cost of the aquatic center (adding-up setup and holding cost)?
2. 200
3. 750
4. 500
5. 40
6. 1500

1. What is the time between orders at the aquatic center?
2. 250
3. 6.25
4. 500
5. 13
6. 365

6) In a fixed-period inventory system (P), an order is placed at the end of the period on a fixed calendar date (for instance, every 1^st of the month).

True or False?

7) According to the fixed-period inventory system (P), the quantity ordered each time is that specified amount needed to bring back inventory up to a target level (for example, the amount required to refill the warehouse). Consequently, amount ordered isn't constant, it will vary based on last period consumption.

True or False?

8) The production order quantity model is used in a warehouse where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. What is the production order quantity for this problem (Q*)?

A) 139

B) 174

C) 548

D) 365

E) 184

9)In the basic EOQ model, if the cost of placing an order doubles (S is multiplied by 2 inside the EOQ formula), and all other values remain constant, consequently EOQ will:

A) increase by about 100%

B) increase by 41%

C) increase by 200%

D) increase, but more data is needed to say by how much

E) either increase or decrease

10) The major difference between POQ and EOQ models is that the POQ model relaxes an EOQ assumption that all the order quantity (Q*) is received at one single point of time. Instead, based on POQ model items gradually accumulate to refill inventory over time.

True or False?

11) The measure of total greenhouse gas emissions is known as:

A) radioactive decay.

B) recycling.

C) waste disposal.

D) sustainability.

E) carbon footprint.

12) A design for disassembly cost-benefit analysis compares the amount of revenue that might be reclaimed against the cost of disposing of the product at its end-of-life.

True or False?

13) What type of supply chains consider forward and reverse product flows over the entire life cycle?

A) sustainable

B) life cycle

C) closed-loop

D) socially responsible

E) end-to-end

14) Design for disassembly encourages designers to create products that can be taken apart and whose components can be recovered, minimizing impact on the environment.

True or False?

15) Within environmental regulation, the "cap-and-trade" principle essentially allows companies to buy and sell the right to pollute.

True or False?

16) Suppose that a firm has made the following computations for its design for disassembly: processing cost per unit = $13.00, disposal cost per unit = $9.00, resale revenue per unit = $22.00, and recycling revenue per unit = $8.00. The revenue retrieval for this product is:

Revenue retrieval = $22.00 + $8.00 - $13.00 - $9.00 = $8.00

True or False?

17) A firm is considering three different product designs. Data concerning the design for disassembly for each of the designs are provided in the table below. Based on Table Design 2 has the highest revenue retrieval.

True or False?

Product Design	Resale Revenue per Unit	Recycling Revenue per Unit	Processing Cost per Unit	Disposal Cost per Unit
1	$100	$10	$40	$5
2	$80	$50	$20	$20
3	$200	$25	$130	$20

18) If the variance of demand by customer equals 800, and the variance of orders from supplier equals 750, what is happening at this part of the supply chain?

A) The bullwhip effect is present.

B) The supplier is providing a dampening (anti-bullwhip) effect.

C) The bullwhip measure for the supplier equals 1.067

D) Neither amplification nor smoothing is present.

E) Both amplification and smoothing are present.

19) A specific product has demand during lead time of 100 units, with a standard deviation of demand during lead time of 25 units. What safety stock (approximately) provides a 95% service level?

A) 41

B) 55

C) 133

D) 141

E) 165

20) Vertical integration exists when firm owns the entire supply chain (materials, manufacturing, vendor, retail, and customer's point of sale) and it produces items it used to purchase. For example, Apple owns the raw materials and the retail shops.

True or False?

21) A rice mill in south Louisiana purchases the trucking firm that transports packaged rice to distributors. This is an example of which of the following?

A) horizontal integration

B) forward integration

C) backward integration

D) current transformation

E) Just-in time

22) The bullwhip effect:

A) occurs as orders are relayed from retailers to distributors to wholesalers to manufacturers.

B) results in increasing fluctuations at each step of the sequence.

C) increases the costs associated with inventory in the supply chain.

D) occurs because of distortions in information in the supply chain.

E) All of the above are true.

23) Hewlett-Packard delays customization of its laser printers as long as possible. This is an example of which of the following strategies?

A) vendor-managed inventory

B) standardization

C) vertical integration

D) postponement

E) just-in-time

24) Whole foods and Costco percentage of investment in inventory is relatively low (2-3%) because their supply chain consists of perishable food items such as milk, fruits and vegetables that rapidly spoil.

True or False

25) A fried chicken fast-food chain that acquired feed mills and poultry farms has performed which of the following?

A) horizontal integration

B) forward integration

C) backward integration

D) current transformation

E) job expansion

26) Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $30 million. If the balance sheet amounts show $5 million of average inventory, and $10 million of property, plant & equipment, what is the firm's percentage invested in inventory?

A) 25%

B) 0

C) 100%

D) 33%

E) 50%

27) The measurement inventory turnover is the amount of times firm is succeeding to sell its inventory per year. A high value of inventory turnover is a sign the firm manages its inventory in an efficient manner by turning it into sales.

True or False?

28) The annual demand, ordering cost, and the annual inventory carrying cost rate for a certain item are