1. You work for a retailer that sells computer games. One of those games is Quex. You have been ordering 1000 games each time you place an order. When you order less, why does ordering cost increase?

a. since you are ordering less, you have a place fewer orders to meet annual demand.

b. since you are ordering less, you have to place more orders to meet annual demand.

c. since you are ordering less, you have less inventory .

d. since you are ordering less, you have more inventory.

2. You manage a salon that provides services such as haircuts, beard trims, hair dye, etc. One of your challenges is to manage capacity - that is how many stylists to hire and schedule. Which capacity option is NOT available to you when you create an aggregate plan?

a. influence demand

b. inventory levels

c. varying workforce size (hiring/firing)

d. counter-seasonal product

3. You are a manager at Karston Manufacturing (PING) in their golf club assembly facility. Which one of the following is NOT a basic demand option for your aggregate plan?

a. subcontracting

b. promotion

c. all are demand options

d. pricing

e. backordering