1. In inventory management, an ABC inventory classification system that divides inventory into size or volume categories that map into strategies appropriate for the category. Could result in reducing the storage capacity of the warehouse. ( True/ false)

2. Bullwhip effect is the variability in demand is magnified as we move from the customer to the producer in the supply chain. It can be often reduced by reducing prices of products. ( True/ false)

3. In facility planning, Factor-rating systems is an approach for selecting a facility location by combining a diverse set of factors. Point scales are developed for each criterion. Each potential site is then evaluated on each criterion and the points are combined to calculate a rating for the site. ( True/ false)

4. Logistics is the management functions that support the complete cycle of material flow: from the purchase and internal control of production materials; to the planning and control of work-in-process; to the purchasing, shipping, and distribution of the finished product. ( True/ false)

5. Cross-docking is an approach used in consolidation warehouses where, rather than making larger shipments, large shipments are broken down into small shipments for local delivery in an area. The products may also be stored for future use as well. ( True/ false)

6. Dependent demand happens when the need for any one item is a direct result of the need for some other item. While Independent demand is characterized when the demands for various items are unrelated to each other. ( True/ false)

7. Shortage costs happens When the stock of an item is depleted, an order for that item must either wait until the stock is replenished or be cancelled. Stock out happens when the demand is not met, and the order is cancelled. ( True/ false)

8. Lean production Integrated activities designed to achieve high-volume, high-quality production using minimal inventories of raw materials, work-in-process, and finished goods. Its main goal is to reduce waste in all aspects of the organization. ( True/ false)