1. What is a downside for keeping inventory?

1. It is costly
2. Products might get obsolete
3. Inventory can hide the existing problems
4. All above
5. Only (a) and (b)

2. Which of the following is a solution to product obsolescence when we keep inventory

1. A good risk assessment strategy
2. An effective Business Impact Analysis
3. Sell One Stock One (SOSO) strategy
4. Working with reliable suppliers

3. When is extra capacity more preferable than safety inventory?
   1. High production cost, or very high product value
   2. Unavailability of alternative production facilities
   3. When demand variability is very low
   4. Only (a) and (b)
   5. none of the above

4. True / False: One of the challenges of building extra capacity is the fact that you need to keep skilled personnel ready to operate the redundant capacity if it is necessary

5. Which of the following is NOT an advantage of single sourcing

1. More flexibility
2. Lower costs (economy of scale)
3. Lower risk of crucial information getting compromised
4. Better/closer relationship with suppliers

6. What is the advantage of multi-sourcing?

1. Competition provides higher quality & lower costs
2. Low level of dependency on one supplier results in higher bargaining powers
3. Lower vulnerability to supplier failure
4. All of the above
5. Only (b) and (c)

7. Newsvendor inventory model is a model for

1. Very expensive products
2. Products with very random demand
3. Seasonal or perishable products

4. All above