The following two questions use the data in the table below, which shows demand for $6$ weeks $($weeks $11-16$ for the year$)$ for one product. Suppose inventory is managed with a periodic review system where orders are placed every three weeks and R$=400.$ The previous order was for $300$ units and was placed at the end of week $9.$ The lead time is a constant four weeks. At the beginning of week $11($same as end of week $10)$ the inventory level is $200$ units. Orders are made at the end of a week.

week demand Inventory at end of week

$(200$ at end of week $10)$

$1150$

$1230$

$1340$

$1440$

$1550$

$1690$

$5\mathrm{.}3$ When is the next order?

a$)$ end of week $11.$

b$)$ end of week $12.$

c$)$ end of week $13.$

d$)$ end of week $14.$

e$)$ none of the above.

$5\mathrm{.}4$ How large is that next order?

a$)120.$

b$)280.$

c$)390.$

d$)500.$

e$)$ none of the above.

$5\mathrm{.}5$ Suppose when managing inventory of a particular item, the economic order quantity is calculated as $364\mathrm{.}4$ units, but that order size cannot be used in practice. If the size of each order is $400($about $10\%$ larger than the economic order quantity amount$),$ then how will the total cost likely change compared to the optimal $($minimal$)$ cost with ordering $364\mathrm{.}4?$

a$)$ It will likely be $10\%$ smaller.

b$)$ It will likely be more than $10\%$ larger.

c$)$ It will likely be exactly $10\%$ larger.

d$)$ It will likely be less than $10\%$ larger.

e$)$ none of the above.

$5\mathrm{.}6$ An increase in the variability in inventory levels as one moves upstream in the supply chain is known as

a$)$ S&OP$.$

b$)$ the EOQ.

c$)$ the Bullwhip Effect.

d$)$ the Upstream Effect.

$5\mathrm{.}7$ A production system based on high quality, small lot sizes and low inventory is

a$)$ ERP.

b$)$ just$-$in$-$time$/$lean$.$

c$)$ LP$.$

d$)$ EOQ.

$5\mathrm{.}8(2$ pts$.)$ A primary principle of good product or service design is

a$)$ complexity.

b$)$ simplicity.

$5\mathrm{.}9$ In inventory management for one particular product, increasing the amount of inventory being held will generally

a$)$ result in more stockouts and higher annual stockout costs.

b$)$ result in more stockouts and lower annual stockout costs.

c$)$ result in fewer stockouts and lower annual stockout costs.

d$)$ result in fewer stockouts and higher annual stockout costs.

$5\mathrm{.}10(2$ pts$.)$ The Add$-$In in Excel used to find the optimal solution to a linear programming problem is called

a$)$ Opt.

b$)$ EOQ.

c$)$ S&OP$.$

d$)$ Solver.

For the next $3$ questions, suppose one wants to formulate a linear programming problem for a gasoline company that produces three types of gasoline using the following variables:

A $=$ gallons of regular gasoline produced each week,

B $=$ gallons of midgrade gasoline produced each week,

C $=$ gallons of premium gasoline produced each week,

$5\mathrm{.}11$ Which constraint says $$They can produce at most $5,000$ gallons of the regular and premium grade gasoline combined$.$

a$)$ A $+$ C $<=5,000$

b$)$ A $+$ C $>=5,000$

c$)$ A $+$ B $+$ C $<=5,000$

d$)$ A $+$ B $+$ C $>=5,000$

e$)$ none of the above.

$5\mathrm{.}12$ Which constraint says $$The total gallons of premium gasoline produced each week cannot be more than the total gallons of regular gasoline produced each week$.$

a$)$ C $<=$ A

b$)$ A $<=$ C

c$)$ C $>=$ A$+$B$+$C

d$)$ none of the above.

$5\mathrm{.}13$ Which constraint says $$half as much of regular gasoline will be produced as midgrade gasoline$?$

a$)$ A $>=2$B

b$)$ B $>=2$A

c$)$ A $=2$B

d$)$ B $=2$A

e$)$ none of the above.