1. Logistics is an important area, because logistics activities

a) are usually inexpensive.

b) are expensive.

c) optimize the tradeoff between a customers cost for waiting and the cost for providing service.

2. Having more periods in a moving average forecast will make the forecast

a) more responsive to changes in demand.

b) less responsive to changes in demand.

3. If hiring and firing costs are very small relative to inventory holding costs, then which Sales & Operations plan is likely to have the lowest total cost?

a) Chase plan.

b) Level plan.