Reference no: EM131230947
1) Caterpillar’s December 31st, 1998 balance sheet shows accounts receivable of approximately $2.5 billion, accounts payable of approximately $4.0 billion, and an inventory of approximately $3.0 billion. Their 1998 income statement shows Cost of Good Sold (COGS) of approximately $15 billion, sales of approximately $20 billion, and operating costs of approximately $18 billion. How many days, on average, does an entry stay on Caterpillar’s accounts receivable? Assume a year has 360 days.
a) 45 days
b) 80 days
c) 20 days
2) One of the most-often sold items at a grocery store is frozen pizzas. The weekly demand for frozen pizzas at a local grocery store is 20,000 pizzas. The standard deviation in demand is 2,000 pizzas per week. The supplier needs two weeks between an order and delivery of a new batch of frozen pizzas. Determine the safety stock at a 99% service level.
a) Approximately 4,650
b) Approximately 46,600
c) Approximately 6,600
3) A local ice-cream parlor has 100 customers in the “rush” hour between 5PM and 6PM (assume that the customers arrive according to a uniform distribution, i.e., evenly spread out during the hour). If there are two employees who scoop the ice-cream for the customers, and one more who deals with the payments, then what is the Taktzeit for the employee taking care of the payments?
a) 36 seconds
b) 100 seconds
c) 72 seconds
d) 50 seconds
4) Postponement of the fan-out point:
a) Can realize a lower service level
b) Can realize a lower safety stock
c) Can only work for ice-cream.
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