8. The demand for four preceding months 1 through 4 are: 80, 85, 83, 90 respectively. What is the moving average forecast for month 5 using a simple three-month moving average?

a. 82.5

b. 86.0

c. 82.7

d. Cannot be determined from the above data.

e. None of the above.

9. Which of the following is the most important reason for making a part internally as compared to sourcing it from a vendor?

a. It is cheaper for the firm to build the part internally than to obtain it from a vendor.

The part is linked to the core competency of the firm.

c. There is excess unused capacity within the firm which can be used to build the part.

d. The part is usually used to produce products for a major customer.

10. Which of the following statements best captures the notion of the bullwhip effect? In a supply chain:

a. as the number of suppliers is reduced, each supplier has greater leverage over its customers because of the customers dependency on the supplier.

b. customers have greater power and influence; hence, they can significantly shape and direct the actions of their suppliers.

c. small changes in customer requirements create larger and larger swings as we move through the supply chain

d. large variations in the needs of the customers have decreasingly smaller effects on the actions taken by its suppliers.