Answer True/False (No Explanation is needed)

1.The setup cost is an inventory system is independent of the size of the order quantity.

2.In an inventory model, the shortage cost is usually the easiest to estimate.

3.It is permissible to incur both holding and shortage costs in the same inventory model.

4.As the holding cost increases, the optimum order quantity also increases.

5.In an inventory system, there may be more than one outstanding order at a time.

6.The number of outstanding orders is independent of the length of lead time.

7.For pull processes a manager must forecast what customer demand will be in order to plan the level of available capacity and inventory.

8.Mature products with stable demands are usually the most difficult to forecast.

9.A poor aggregate plan may result in a large amount of excess inventory and capacity, thereby raising costs.

10.An aggregate plan based on Chase Strategy will end up with high inventory.

11.Predictable variability is change in demand that cannot be forecasted.

12.Promotion during peak demand period reduces profitability.

13.Operations (manufacturing) usually makes promotion and pricing decisions.

14.The combination of pricing and aggregate planning can be used to maximize supply chain profitability.

15.The use of common components across multiple products will reduce demand variability for the components.

16.Promotions during low demand periods will reduce inventory.

17.Under inflexible production capacity, promotions should be done during peak demand period.

18You can steal shares from your competitors if promotions are done during high demand periods.