1) Multi-echelon inventory management is used when there are multiple suppliers for the same item. A) True B) False

2) Which statement is consistent with the basic EOQ quantity discount model for inventory management? A) The quantity that results in the lowest unit cost will be selected. B) Price per unit is not associated with quantity ordered. C) The lowest possible ordering costs occur at the quantity discount EOQ. D) Total ordering, holding and purchase cost are minimized.

3) The fixed order interval model for managing inventory requires inventory levels to be continually tracked so the timing of when to place an order can be determined. A) True B) False

4) The planned shortage model includes back-order cost. Multiple Choice A) True B) False

5) Which of the following is not a technique used for aggregate planning? Multiple Choice A) Linear programming B) Transportation model C) Trial-and-error worksheets or graphs D) Double smoothing

6) Which statement concerning aggregate planning for services is accurate? A) Number of FTEs (full time equivalents) is often used to plan labour intensive services B) Services occur when they are rendered, so they can't be inventoried C) Matching capacity and demand each period is more important than it is for manufactured products D) All the statements are accurate

7) Sales and operations plans usually deal with aggregated demand for products and services. Multiple Choice A) True B) False

8) The following input is provided for developing an aggregate production plan for April through December, 2011; Inventory at the end of March 2011 = 0 units Forecast demand for April, 2011 = 200 units Production output expected during April, 2011 = 350 units. Number of back orders at the end of March, 2011 = 50 units. What is the expected inventory at the end of April, 2011? A) 0 units B) 100 units C) 150 unit

9) The following input is provided for developing an aggregate production plan for January through September, 2011; Inventory at the end of December 2010 = 400 units Forecast demand for January, 2011 = 150 units Production output expected during January, 2011 = 200 units. What is the expected inventory at the end of January 2011? A) 50 units B) 200 units C) 350 units

10) A restaurant employees 40 people. Each employee is scheduled to work 150 hours per month and is paid $15 per hour. The restaurant is busy and each employee can work up to an additional 20% of the regular schedule on overtime. Overtime is compensated at 1.5 times the regular wage rate. If all employees worked all regular and all overtime hours in a month, how much would the labour cost be for the month? A) $90,000 B) $105,000 C) $112,000 D) $117,000