Test Content Question 1 2 Points The effectiveness of the push/pull strategies can be product dependent. Which of the following statement(s) are correct? A The pull strategy tends to work better for high-value (e.g., smartphone) and slow-moving items. B The choice of push/pull strategies is not product dependent. The push strategy tends to work better for low value (e.g., feature phone) and fast-moving items. Question 2 2 Points Why do we need data on sales and inventory? A In order to estimate inventory holding and shipping cost rates. B In order to calculate demand volume and inventory statistics. In order to calculate inventory holding and shipping costs. Question 3 2 Points A company is considering changing its distribution strategy from push to pull, meaning instead of stocking up inventory at stores to fill consumers' demand, it uses stores mainly as show-rooms. Its weekly average demand at each store is about 50 units. Assume there is economies of scale in picking the picking cost for the first pick is $1 per unit and is $ 0.1 per unit for follow-up picks. How would its weekly picking costs be affected when it changes from push to pull strategy? A Its picking costs would decrease by 7.5 times B Its picking costs would keep the same Its picking costs would increase by 7.5 times Its picking costs would decrease by 7.5 times