Your CEO must make some big changes and does not know where to start. He asks you to advise him to test your knowledge by answering this question: When is it prudent to maximize capacity utilization when:

a. When both process and demand variability is low

b. Process variability is low

c. When there are more steps in the process and demand variability is low

d. Demand variability is low

e. There are more steps in the production process

Still unsatisfied your CEO tests your knowledge again. He asks you to answer the question: "Is it possible to reduce the amount of safety stock and increase the service level simultaneously?" Your options are: a. Yes, when across the supply chain demand information is shared

b. Yes, if you ask the supplier to hold more inventory c. No

Now your CEO trusts you enough to answer a final question: " If we were to purchase a complex machine that is fast but requires large production batches, what will happen to the intensity of the "bull whip" in the supply chain?" a. Decrease b. Increase c. Not be affected b. Yes, if you ask the supplier to hold more inventory c. No