1.As a firm increases its service level (availability), the required inventory will ______.

a). Cannot be determined

b). increase at an increasing rate

c). increase at a decreasing rate

2. Which of the following components does NOT influence reorder point?

a). Average periodic demand

b). replenishment lead time

c).order quantity

3. Which of the following approaches offers the most flexibility?

a). MTO (make to order)

b). CTO (configure to order)

c). ETO (engineer to order)

4. Which of the following sets of conditions does NOT support planning logic?

a). economies of scale

b). Demand uncertainty

c). Supply Uncertainty

5. A performance cycle is related to which of the following inventory elements?

a). Cycle stock

b). Obsolete Stock

c). Transit stock

6. Consumer demand would typically be characterized as ______.

a). dependent demand

b). Independent demand

c). None of the choices are correct