Kanban$\_\_\_\_\_\_.$

a is a visual signal used to tell workers when it is time to get or make more of

something #REF!

b means level production

c is a visual signal used to tell workers when it is time for lunch

d is used in the push production system

$26$ Major categories of inventory$-$related costs include $\_\_\_\_\_\_.$

a cost of defective raw materials #REF!

b holding or carrying costs

c cost of government audits

d cost of holding the wrong products

$27$ Setup costs $\_\_\_\_\_\_.$

a are the costs of setting up retail operations #REF!

b are the costs of changing production from one item to another

c are usually higher than holding costs

d are the same as storage costs

$28$

Purchasing materials in higher volumes has the advantage of reducing $\_\_\_\_\_\_.$

a price charged to customer #REF!

b avoiding the possibility of having a surplus of finished products

c costs associated with storing these materials

d unit cost of material

$29$ Which of the following is true with regard to backorders?

a The revenue earnings are improved. #REF!

b The sale is lost for the moment but filled at a future date.

c They have a positive impact on the company$$s reputation.

d They have a positive impact on the company$$s market share.

$30$ A high inventory turnover ratio indicates that $\_\_\_\_\_\_.$

a potential for product obsolescence is high #REF!

b inventory is not being replenished

c the firm is converting its inventory to profits faster

d potential for product theft and damage is high

$31$ In an ABC classification system, an A item $\_\_\_\_\_\_.$

a may have low demand but high ordering cost #REF!

b may have low quality but high holding cost

c may have low value but high sales volume

d may have low quality but high ordering cost

$32$ If the production schedule calls for assembly of $500$ motorcycles, then the $1,000$

wheels and $1,000$ tires that are required to produce the $500$ motorcycles are

$\_\_\_\_\_\_.$

a classified as independent demand items #REF!

b classified as inelastic demand items

c classified as dependent demand items

d classified as inelastic supply items

$33$ One of the assumptions of the EPQ $($Economic Production Quantity$)$ model is

$\_\_\_\_\_\_.$

a that production runs to replenish inventory occur at regular intervals #REF!

b that there are several different products involved

c that the lead time for the receipt of orders varies depending on the order

d that there are large discounts available at higher volumes

$34$

Which of the following is a difference between the EOQ and the EPQ models?

a In the EOQ model, additional inventory is received all at once, but not in the EPQ

model. #REF!

b In the EOQ model, there are quantity discounts available, but not in the EPQ

model.

c In the EOQ model, lead time is known, but not in the EPQ model.

d In the EOQ model, shortages are allowed, but not in the EPQ model.

$35$

In the EOQ model, determining the optimal order quantity requires us to $\_\_\_\_\_\_.$

a strike a balance between ordering and holding costs #REF!

b increase number of orders along with quantity ordered at any time

c strike a balance between quantity and quality of materials ordered

d increase number of orders depending on the volume discounts provided

$36$ Sales and operations planning is also known as $\_\_\_\_\_\_.$

a demand planning #REF!

b aggregate planning

c sales planning

d independent planning

$37$ The first step in sales and operations planning is $\_\_\_\_\_\_.$

a supply planning #REF!

b demand planning

c data gathering

d financial planning

$38$ A$($n$)\_\_\_\_\_\_$ team typically consists of personnel from purchasing, inventory

management, production, warehousing, and logistics$.$

a operations planning #REF!

b financial planning

c demand planning

d supply planning

$39\_\_\_\_\_\_$ deals with evaluating the financial feasibility of the demand and supply

plans developed in the previous stages of S&OP planning in terms of ROA, profits,

revenue, and working capital investments.

a ROA planning #REF!

b Financial planning

c Investments planning

d Revenue planning

$40$ Companies that produce lawn mowers to meet demand during the summer

months can also manufacture snow blowers for the winter. This approach is an

example of $\_\_\_\_\_\_.$

a matching supply and demand with backorders #REF!

b matching price with demand

c developing counter$-$seasonal products and services

d advertising and promotions