Question 10

Lowering price would tend to decrease lead time.

1. True
2. False

Question 9

Customer service impacts demand with the impact being very product specific.

1. True
2. False

Question 8

Quality and design significantly impact demand for specialty high value products.

1. True
2. False

Question 7

Higher inventory levels lower lead time.

1. True
2. False

Question 6

For commodity items, customer demand is most impacted by the following

price

lead time

marketing

quality above standard

customer service

Question 5

Marketing impact inventory control by changing demand rate.

1. True
2. False

Question 4

Longer lead times will results in more demand.

1. True
2. False

Question 3

Using higher inventory levels will reduce lead time.

1. True
2. False

Question 2

Lead time can be reduced by increasing capacity and price.

1. True
2. False

Question 1

You are a manufacturing plant that makes a high profit margin item (50% profit). You would be generally more inclined to give up some profit margin to get reduced lead time compared to a plant that make item item with 2% margin.

1. True
2. False