3620quiz3 - Question 1 2 out of 2 points A bakery wants to...

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Question 1 2 out of 2 points A bakery wants to determine how many trays of doughnuts it should prepare each day. Demand is normal with a mean of 5 trays and standard deviation of 1 tray. If the owner wants a service level of at least 95%, how many trays should he prepare (rounded to the nearest whole tray)? Assume doughnuts have no salvage value after the day is complete. Selected Answer: 7 Answers: 5 4 6 7 unable to determine with this information Question 2 2 out of 2 points A firm wants to develop a level material use schedule based on the following data. What should be the setup cost? Selected Answer: $0.4 5 Answers: $0.4 5 $4.5 0 $45 $45 0 $50 0 Question 3 2 out of 2 points A local club is selling Christmas trees and deciding how many to stock for the month
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of December. If demand is normally distributed with a mean of 100 and standard deviation of 20, trees have no salvage value at the end of the month, trees cost $20, and trees sell for $50 what is the service level? Selected Answer: .60 Answers: .60 .20 .84 .40 unable to determine given this information Question 4 2 out of 2 points A manufacturer took the following actions to reduce inventory. Which of these is generally no t accepted as a JIT action? Selected Answer: It picked the supplier that offered the lowest price based on quantity discounts. Answers: It used a pull system to move inventory. It produced in ever smaller lots. It required deliveries directly to the point of use. It picked the supplier that offered the lowest price based on quantity discounts. It worked to reduce the company's in-transit inventory. Question 5 2 out of 2 points A specific product has demand during lead time of 100 units, with a standard deviation during lead time of 25 units. What safety stock (approximately) provides a 95% service level? Selected Answer: 41 Answers: 41 55 133 140 165 Question 6 2 out of 2 points
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ABC analysis is based upon the principle that: Selected Answer: there are usually a few critical items, and many items that are less critical. Answers: all items in inventory must be monitored very closely. there are usually a few critical items, and many items that are less critical. an item is critical if its usage is high. more time should be spent on class "C" items because there are many more of them. as with grade distributions in many MBA courses, there should be more medium-level "B" items than either "A" or "C" items. Question 7 2 out of 2 points Among the advantages of cycle counting is that it: Selected Answer: allows more rapid identification of errors and consequent remedial action than is possible with annual physical inventory. Answers: makes the annual physical inventory more acceptable to management. does not require the detailed records necessary when annual physical inventory is used.
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