1. True/False: Holding all else equal, if you increase the desired service level from

0.8 to 0.9 in a multi-period inventory system with continuous review and uncertain

demand, then your required reorder point R will decrease.

2.True/False: All else equal, the EOQ quantity increases as the lead time increases.

3.True or False: A shirt takes on average 10 minutes to move through the

manufacturing process at the plant. On average, the plant has 100 t-shirts in the

process. Therefore, on average, the plant makes 600 shirts an hour.

4.True/False: The profit maximizing order quantity in a Newsvendor setting (i.e.,when

demand is uncertain and the order quantity must be decided way in advance of

demand realization) is always when the overage costs and underage costs are equal.

5.True/False) By increasing the bottleneck's capacity by 10%, the process capacity

will always increase by 10% as well.

6.True/False: Suppose you look at a process that has seven resources. Four of the

resources have implied utilizations over 100%. You, therefore, can conclude that you

have four bottlenecks.

7.True/False: In class, we discussed how Zara has revolutionized fast fashion, by

shrinking supply chains and leadtimes, minimizing inventory levels of fashion lines

and using omnichannel strategies to effectively meet demand. By doing this, Zara is

eliminated all of the bottlenecks in its system.