Reference no: EM132262698
1. A useful EXCEL feature for generating random input from historical data is
A. Poisson
B. Vlookup
C. Normal.dist
D. sumproduct
2. The main reason that a large number of replications of a simulation would be made is:
A. computers are usually used, and they can easily handle a large number of replications.
B. it is part of the scientific approach.
C. it is a form of sampling, and large samples give more accurate results than small samples.
D. it is more likely to provide optimal answers.
E. None of the answer choices is correct.
3. Which of the following would not be a probable reason for choosing simulation as a decision-making tool?
A. The situation is too complex for a mathematical model.
B. There is a limited time in which to obtain results.
C. Good results have been obtained in the past using simulation.
D. Users are able to understand the model.
E. All of these are probable reasons for choosing simulation.
4. Which of the following is not a reason for simulation's popularity?
A. It is simple to use and/or understand.
B. Extensive software packages are available.
C. Many situations are too complex for mathematical solutions.
D. If can be used for a wide range of applications.
E. It is typically an inexpensive approach.
5. A simulation model is an example of a
A. Encrypted Model.
B. Descriptive Model.
C. Prescriptive Model.
D. Proscriptive Model.
Inventory Management with Know Demand
Inventory Management with Uncertain Demand
6. The Economic Order Quantity (EOQ)
A. Balances the ordering cost with the holding cost to provide the minimum total cost.
B. Applies to the single-period inventory model.
C. Is always the “best” order quantity, even when volume discounts are offered.
D. All of the above
7. A system where the inventory position is always known, is the
A. Periodic review inventory system
B. Continuous review inventory system
C. Just-in-time inventory system
D. Single-period inventory model
E. Kanban
8. The “Inventory Position” is
A. The inventory on hand.
B. The reorder inventory.
C. The inventory on order.
D. The inventory location.
E. The inventory on hand plus the inventory on order.
9. Uncertainty in demand and/or order lead times may cause a firm to hold
A. cycle stock
B. hedge inventory
C. safety stock
D. muda
E. capital
10. In a single-period inventory model (Newsboy problem) the
A. inventory is monitored continuously.
B. The cost of over-estimation of demand is balanced against the cost of under-estimation of demand.
C. A very low probability of stock-out is required.
D. The demand is deterministic.
11. Goodwill cost is
A. The cost of transporting unsold inventory to Goodwill.
B. Cost associated with unmet demand.
C. The cost (salaries, paper, transportation, etc.) associated with placing an order.
D. The cost associated with maintaining an inventory investment, including the cost of the capital investment in the inventory, insurance, taxes, warehouse overhead, etc.
12. In a periodic review system (with uncertain demand)
A. The reorder point is always the same.
B. The order quantity is always the same.
C. The replenishment level is always the same.
D. Stock-out can never occur.
13. In a continuous review inventory system (with uncertain demand).
A. The reorder quantity is always the same.
B. The time between orders is always the same.
C. Unused inventory must be sold for salvage or disposed.
D. Stock-out can never occur.
14. When graphed over time, inventory levels for purchased products roughly show a
A. Fishbone Pattern.
B. Sawtooth Pattern.
C. Horizontal Pattern.
D. Radom Pattern.
15. When holding costs for a product are very large, a good inventory strategy might be
A. Planned shortages.
B. Unplanned shortages.
C. Volume discounts.
D. Offloading.
16. Your supplier might prefer that you use a periodic review inventory system because
A. They know when and how much you will order.
B. They know when you will order.
C. They know how much you will order.
D. They can increase the lead time.
E. All of the above.