Question 13 (1 point)

What is the most important reason Caterpillar is willing to carry such a large inventory of spare parts in their inventory, some of which may be very slow moving?

Caterpillar has sufficient warehouse space available

Spare parts are manufactured very infrequently

Most Caterpillar customers have limited warehouse space

Customer downtime is prohibitively expensive

Question 14 (1 point)

What is meant by the term Value-Added Services?

Activities that a firm should strongly considering outsourcing

Other activities that can be detrimental to providing exceptional customer service

Other activities that a supplier could provide beyond their normal core competency

Activities that increase costs to customers

Question 28 (1 point)

Distribution Requirements Planning (DRP) is a system that minimizes inventory and coordinates manufacturing output through what metric?

Question 28 options:

net requirements

warehouse capacity planning

postponement orders

forecast demand

Question 29 (1 point)

Which of the following is an example of a demand risk?

Single-sourcing for a material

Labor unrest

Supplier malfeasance

A forecasting error