If demand is 50 per day, with a standard deviation of 5, the average lead time is 5 days and it has been previously determined that required safety stock is 10 units, then what is a reorder point for this item? Explain briefly.

• 55
• 240
• 60
• 260
• None of them, because

Which claims are true about Incoterms?

• In F-clauses, it is the seller (exporter) who is picking the carrier for the main leg.
• The applied clause is agreed between buyer and seller in a contract of sales.
• Incoterm that requires one side to handle customs clearance on both sides is FOB.
• Come pick it up yourself incoterm is FCA.

Which claims are true about the Bullwhip effect?

• Higher demand visibility through modern data systems helps to avoid/minimize the bullwhip effect.
• Longer ordering intervals increase the vulnerability to the Bullwhip effect.
• When the supply chain is more pull- than push-based, the vulnerability to the Bullwhip effect is lower.
• The confusion caused by the bullwhip effect is amplifying through the supply chain towards supply sources.

17. Which 5 claims from the following are TRUE? (5p)

1. With comparable demand pattern, fixed order interval method gives on average lower inventory level than fixed order quantity.
2. The lower the inventory turn rate, the more potential savings in increasing its movement speed.
3. OTIF is a method of total cost calculation.
4. Economic order quantity model balances total cost of ownership with total ordering costs.
5. Decentralized inventory systems tend to have more total inventory than centralized inventory systems.
6. Fragmentation in supply chain management is defined as the purchasing practice where more than one supplier is used for the same product to create competition and motivate improvement.
7. A bow-tie model represents a transaction-based, cooperation lacking supplier relationship.
8. MTO and ETO are pull-based principles.
9. Confirming to absolutely all order qualifiers means the ability to claim leading market position.
10. When demand is fluctuating, the size of a safety stock buffer depends on the statistical variability of demand and lead time.