The probability of demand for an item is given as below:

Demand	10	20	30	40	50
Probability	10%	10%	35%	25%	20%

Each product sells for $10 and costs $5 to make. Items that are not sold at the end of the day are sold at a reduced price of $3. What is the optimal number of product the company should make?

There are several ways to measure service level. Which of the following are the correct way? I Percentage of units demanded that are delivered from stock II Percentage of time there is stock available III Percentage of stock cycles without shortages IV Percentage of demand satisfied from the safety stock

The target stock level is

Group of answer choices

The EOQ

Same as the safety stock

The amount stock required to satisfy all demand

The order quantity

Using the periodic review system the target level is:

Group of answer choices

Forecast demand during the review period

The sum of forecast demand during lead time and forecast demand during the review period

Forecast demand during lead time

The sum of forecast demand during lead time and forecast demand during the review period plus the safety stock

Demand for 49-inch TV is 8 per day. The order lead time is four days. Solve what the reorder point should be.

about 42

about 71

about 24

about 32

The purpose of safety stock is to

Group of answer choices

Eliminate the likelihood of a stock out due to erroneous inventory tally

Replace failed units with good ones

Eliminate the possibility of a stock out

Control the likelihood of a stock out due to the variability of demand during lead time

If the cycle service level increases, the percentage of cycles with shortages

Group of answer choices

Increases

Remains same

Decreases

Increases first and then decreases

Select the factors that may increase the amount of safety stock for an organisation. I Large number of competitors cause uncertainty in demand II Covid-19 pandemic increase supply uncertainty III Higher shortage cost

Group of answer choices

I and III

I, II and III

I and II

II and III

Which forecasting method does NOT need past data?

Group of answer choices

Regression analysis

Exponential smoothing

Delphi method

Moving average

The old forecast was for 200 units and last month's sales were 225 units. If (alpha) is 0.15 what is the forecast for next month using exponential smoothing?

Group of answer choices

204

200

220

212

Forecasts are far more accurate for which of the following?

Group of answer choices

Product families

End use components

Short term

Individual items

Which of the following statements about ABC analysis isfalse?

Group of answer choices

ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings

In ABC analysis, "A" Items are tightly controlled, have accurate records, and receive regular review by major decision makers.

ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.

In ABC analysis, "C" Items have minimal records, periodic review, and simple controls.

Which of the following methods can be used to forecast the demand for a NEW product?

Group of answer choices

Equation fitting

Qualitative techniques

None of the listed options

Moving averages

Select the product that is less likely to show seasonal demand compared to other products:

Group of answer choices

Christmas trees

Mooncakes

Winter coats

Toasts

Based on the data below, what is the MSD over these 4 months?

Month	1	2	3	4
Demand	120	98	112	105
Forecast	123	100	120	100

Group of answer choices

18

25.5

4.5

102

PRT Pte Ltd sells its printers for $150 each. Annual sales are 1000 units. Its average stock of the item is 100 units with each unit costing $100. Each unit is held in stock for about 25% of its costs a year. What is the stock turn?

Group of answer choices

1.5

15

10

1

A forecasting technique that takes the average demand for some past number of periods is called:

Group of answer choices

None of the listed options

Moving average

Exponential smoothing

Trend time analysis

Select the following statements that are true: I Demand fluctuations that depend on the time of the year, week or day are called seasonality II The seasonal index is an estimate of how much the demand during the season will be above or below the average demand III Seasonality ALWAYS occurs in summer, winter, spring and fall

Group of answer choices

All of the above

II and III

I and II

I and III