6) A constraint in an optimization modeling approach to S&OP should not allow overscheduling of equipment time. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question 7) The inventory that companies hold to protect themselves against uncertainties in either demand or 7) replenishment time is called A) safety stock B) anticipation inventory C) smoothing inventory. D) hedge inventory 8) Inventory that is in the pipeline" moving from one link in the supply chain to another is. A) transportation inventory. B) hedge inventory C) smoothing inventory. D) anticipation inventory. 9) Which of the following relationships illustrates the role of dependent demand inventory? A) A tire maker buys cleaning supplies B) A winemaker buys grapes from farmers in the Columbia Valley. C) A business purchases a new car when the old one wears out. D) An automaker purchases four tires for each car they produce 10) The beef jerky driver shows up every Monday to take orders from his convenience store customers. 10) One fine Monday morning he stops in the Quik-E Mart and notes that there are only three sticks on the shelves. Consulting his route sheet, he discovers that the restocking level is 40. The order quantity is therefore: A) 37 sticks. B) 3 sticks. C) 40 sticks D) Cannot be determined with the information given. 11) The campus bookstore sells 4,000 sets of graduation regalia each year. Placing an order from their 11) supplier costs $25 regardless of order quantity, so they usually place a large order (a half year's supply) at a time. It costs $5 per year to hold a cap and gown in inventory, primarily insurance costs for the highly flammable material. What is their optimal order quantity? B) 2,000 1,000 D) 200 TRUE/FALSE. Write T if the statement is true and 'F' if the statement is false. 12) The bullwhip effect says that a small change in demand downstream in the supply chain causes a 12) large change in demand upstream. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 13) On the master schedule record, the amount of product that will be finished and available for sale at 13) the beginning of each week is the: A) master production schedule. B) projected inventory C) available to promise inventory. D) booked orders A) 150