12. High stock level at the warehouse will most likely result in

(a) Increased risk of inventory but reduced cost of lost sales

(b) Increased capital cost of inventory but reduced service level

(c) Reduced risk of inventory and reduced service level

(d) Increased risk of inventory and increased cost of lost ales

13. Centralized facilities will most likely result in

(a) Stronger integration but reduced response rate

(b) Reduced holding cost and reduced cost of lost sales

(c) Improved coordination but limited processing speed

(d) Inventory efficiency but increased cost of sales

14. Which of the following outcomes is the most likely result of shipping items by water transport?

(a) High capacity for bulk shipment and high response rate

(b) Opportunity for economies of scale and high response time

(c) Highly flexible to ship alternative products and versatile for door-to-door delivery

(d) Limited capacity for high consolidation but short lead-time

15. Which of the following outcomes is the most likely result of shipping items by pipeline transport?

(a) Versatile and flexible for varied supplies but limited speed

(b) Cheaper to supply varied product types

(c) Easy to access equipment for consumable

(d) None of the above

16. Which of the following outcomes is the most likely result of high product variety?

(a) Increased service level and high manufacturing cost

(b) Increased service level and high manufacturing efficiency

(e) Increased service level and low manufacturing cost

(d) Increased service level and improved manufacturing flexibility

17. If the focus of a retailer is to achieve leadership in cost, then which of the following phenomenon will hold good?

(a) Customers will prefer short lead time for their products and the retailer will keep higher amount of inventory in order to satisfy customer needs on time.

(b) Customers will like to have convenience and the retailers will also set up a number of stores at different locations in order to provide convenience to the customers.

(c) Customers will prefer a large variety of products but the retailer will not keep a large variety in the store in order to achieve economies of scale

(d) Customers will prefer a large variety of products and the retailer will also keep a large variety in the store in order to satisfy customer needs.

18. Which of the following is not a direct benefit of reverse logistics?

(a) Allows a trader to receive products back from the consumer or send unsold merchandise back to the manufacturer to be taken apart, sorted, reassembled or recycled, minimizing overall costs for an organization.

(b) It can be valuable in increasing product life cycles, supply chain complexity, maintainable practices and consumer preferences; which have to be improved on to maintain productivity and growth.

(c) More value can be extracted from used/returned goods instead of wasting manpower, time and costs of raw materials involved in the original supply chain.

(d) With orders, you can designate upsell, cross sell, and replacement items for products that are readily accessible and available during order entry.

19. Material handling aims to achieve all the following objectives, except ______________.

(a) Minimize travel distance

(b) Increase work in progress

(c) Eliminate handling wherever possible

(d) Provide uniform flow free of bottlenecks