1) Resources and certain operations that are being sent to outside vendors for increasing margins is: A) a standard use of the make-or-buy decision. B) not allowed by the ethics code of the Supply Management Institute. C) offshoring. D) keiretsu E) outsourcing. 2) Incorrect statement for center-of-gravity method? A) The weights used are the quantity of goods moved to or from each location." B) The optimal x- and y-coordinates are calculated separately. C) The optimal solution is unconstrained, so it could suggest a location in the middle of a body of water. D) It is designed to minimize the maximum possible travel distance to any of the locations. E) The origin of the coordinate system and the scale used are arbitrary, just as long as the relative ances are correctly represented. 3) Can the bullwhip effect occur when orders decrease at retail or distributor level? Yes or No- 4) In inventory models, high holding costs do not favor high inventory levels?- TRUE or FALSE 5) Generally, which one of the following is not considered as Inventory? a. Raw materials b. Machines c. Finished products d. C mable tools e. Buffer stock 6) Why do some companies hold safety stock? (a) To improve stock holding levels (b) To improve stock accuracy levels (c) To cater for a large storage capacity (d) To cater for demand forecast errors (e) when the cost of stockouts cannot be determined e