Question 8 Multiple Choice (Part a-j)

a)Which type of stocks an organization usually holds?

Group of answer choices

raw materials

work in progress

finished goods

spare parts

consumables

All of them

None of them

b)Which of the following is not one of the main methods of evaluating stock?

Group of answer choices

LIFO

FIFO

Weighted average cost

Actual cost

None of them

c)ABC Corp. is planning to increase its services to other states. It currently has 10 distribution centers and warehouses with aggregate stock valued at $60 million. One proposal suggests it expands to 20 distribution centers and warehouses. With a carrying cost is 15% of value a year, what is the likely additional cost of the proposed change?

Group of answer choices

84.85 million

24.85 million

$12.73 million

$9 million

$3.73 million

None of them

d)Which of the following is not one of the assumptions in the basic inventory model?

Group of answer choices

lead time is zero

no shortage is allowed

the costs are known and constant

the demand is known, continuous, and constant

None of them

e)Taking the first derivative of a function and set it to zero, we will get

Group of answer choices

global minimum

local maximum or minimum

global maximum

None of them

f)Continuing from previous question, what is the Inventory Turnover of XYZ Corp.?

Group of answer choices

5.00

3.00

Cannot be determined, needs to know Credit sales %

Cannot be determined, needs to know CoGS

None of them

g)A minor change in customers' demand caused major changes in upper streams in supply chains. This phenomena is called

Group of answer choices

forecast errors

bullwhip effect

uncertainty

seasonal variation

none of them

h)According to lean practice, which one is not identified as a waste?

Group of answer choices

stock

movement

recycle

poor quality

wrong production level

waiting

poor process

None of them

i)Moving materials within an organization is referred as

Group of answer choices

Material handling

Inward transport

Receiving

Order picking

Warehousing

None of them

j)In US, the aggregate business inventory is about

Group of answer choices

120% of GDP

15% of GDP

10% of GDP

8% of GDP

None of them