供应链管理Homework：ChopraChapter 10_NEW

1、Chapter 10Managing Economies of Scale in the Supply Chain: Cycle InventoryTrue/False1. Cycle inventory exists because producing or purchasing in large lots allows a stage of the supply chain to exploit economies of scale and increase cost.Answer: FalseDifficulty: Moderate2. A lot or batch size is th

2、e quantity that a stage of the supply chain either produces or purchases at a given time.Answer: TrueDifficulty: Moderate3. Cycle inventory is the physical inventory in the supply chain due to either production or purchases demanded by the customer.Answer: TrueDifficulty: Moderate4. The inventory pr

3、ofile is a plot depicting the level of inventory over time.Answer: TrueDifficulty: Easy 5. When demand is steady, cycle inventory and lot size are related as follows:Cycle Inventory = Lot Size x 2 = Q*2.Answer: FalseDifficulty: Moderate6. Lot sizes and cycle inventory do not affect the flow time of

4、material within the supply chain.Answer: FalseDifficulty: Easy7. Average flow time resulting from cycle inventory = Cycle Inventory/Demand = Q/2D.Answer: TrueDifficulty: Moderate8. Cycle inventory is primarily held to take advantage of economies of scale and reduce profit within the supply chain.Ans

5、wer: FalseDifficulty: Easy9. Increasing the lot size or cycle inventory often decreases the cost incurred by different stages of a supply chain.Answer: TrueDifficulty: Moderate10. Cycle inventory exists in a supply chain because different stages exploit economies of scale to lower total cost.Answer:

6、 TrueDifficulty: Easy11. The costs considered in lot sizing decisions include material cost, fixed ordering cost, and manufacturing cost.Answer: False Difficulty: Moderate12. The total annual cost is the sum of annual material cost, annual order cost, and annual holding cost, and is given as TC = CD

7、 + (D/Q)S + (Q/2)hC.Answer: TrueDifficulty: Moderate13. The optimal lot size is referred to as the economic order quantity (EOQ). It is denoted by Q * and is given by the equation: Q* = 2DS/hC.Answer: TrueDifficulty: Moderate14. Total ordering and holding costs are unstable around the economic order

8、 quantity.Answer: FalseDifficulty: Moderate15. A firm is often better served by ordering a convenient lot size close to the economic order quantity rather than the precise EOQ.Answer: TrueDifficulty: Moderate16. If demand increases by a factor of k, the optimal lot size decreases by a factor of k. A

9、nswer: FalseDifficulty: Hard17. To reduce the optimal lot size by a factor of k, the fixed order cost S must be reduced by a factor of k.Answer: FalseDifficulty: Moderate18. Aggregating across products, retailers, or suppliers in a single order allows for a reduction in lot size for individual produ

10、cts because fixed ordering and transportation costs are now spread across multiple products, retailers, or suppliers.Answer: TrueDifficulty: Moderate19. A key to reducing cycle inventory is the reduction of lot size.Answer: TrueDifficulty: Easy20. A key to reducing lot size without increasing costs

11、is to reduce the holding cost associated with each lot.Answer: FalseDifficulty: Moderate21. Reduction of fixed cost may be achieved by aggregating lots across multiple products, customers, or suppliers.Answer: TrueDifficulty: Easy22. A discount is volume-based if the pricing schedule offers discount

12、s based on the quantity ordered in a single lot.Answer: FalseDifficulty: Hard23. A discount is volume-based if the discount is based on the total quantity purchased over a given period, regardless of the number of lots purchased over that period.Answer: TrueDifficulty: Easy24. Pricing schedules with

13、 all unit quantity discounts encourage retailers to increase the size of their lots, which reduces the average inventory and flow time in a supply chain.Answer: FalseDifficulty: Moderate25. Marginal unit quantity discounts have also been referred to as multi-block tariffs.Answer: TrueDifficulty: Mod

14、erate26. Quantity discounts lead to a minor buildup of cycle inventory in the supply chain.Answer: FalseDifficulty: Moderate27. For commodity products where price is set by the market, manufacturers can use lot size based quantity discounts to achieve coordination in the supply chain and decrease su

15、pply chain cost. Answer: TrueDifficulty: Moderate28. The supply chain profit is higher if each stage of the supply chain independently makes its pricing decisions with the objective of maximizing its own profit. Answer: FalseDifficulty: Moderate29. For products where the firm has market power, two-p

16、art tariffs can be used to achieve coordination in the supply chain and maximize supply chain profits.Answer: TrueDifficulty: Moderate30. Discounts related to price discrimination will be lot size based.Answer: FalseDifficulty: Hard31. Price discrimination is the practice where a firm charges differ

17、ential prices to maximize profits.Answer: TrueDifficulty: Easy32. The goal of trade promotions is to influence retailers to act in a way that helps the retailer achieve its objectives.Answer: FalseDifficulty: Easy33. Although a forward buy is often the retailers appropriate response and increases th

18、eir own profits, it usually increases demand variability with a resulting increase in inventory and flow times within the supply chain.Answer: TrueDifficulty: Moderate34. Trade promotions lead to a significant increase in lot size and cycle inventory because of forward buying by the retailer.Answer:

19、 TrueDifficulty: ModerateMultiple Choice1. Cycle inventory exists because producing or purchasing in large lots allows a stage of the supply chain toa. exploit economies of scale and raise cost.b. exploit economies of scale and lower cost.c. exploit customers and lower cost.d. exploit customers and

20、raise cost.e. none of the aboveAnswer: bDifficulty: Easy2. The quantity of inventory that a stage of the supply chain either produces or purchases at a given time isa. an order.b. a job.c. a shipment.d. a lot or batch.e. none of the aboveAnswer: dDifficulty: Easy3. The average inventory in the suppl

21、y chain due to either production or purchases in lot sizes that are larger than those demanded by the customer isa. annual inventory.b. distribution inventory.c. cycle inventory.d. physical inventory.e. b and c onlyAnswer: cDifficulty: Moderate4. A graphical plot depicting the level of inventory ove

22、r time isa. an inventory graph.b. a distribution inventory.c. an inventory drawing.d. an inventory profile.e. an inventory picture.Answer: dDifficulty: Moderate5. When demand is steady, cycle inventory and lot size are related asa. Cycle Inventory = Lot Size x 2.b. Cycle Inventory = Q*2.c. Cycle Inv

23、entory = Q/2.d. Cycle Inventory = Lot Size = Q.e. none of the aboveAnswer: cDifficulty: Moderate6. Average flow time resulting from cycle inventory is equal toa. Cycle Inventory/Demand = Q/2.b. Cycle Inventory/Demand = Q/2D.c. Cycle Inventory = Q/2.d. Cycle Inventory = Lot Size = Q.e. none of the ab

24、oveAnswer: bDifficulty: Moderate7. Cycle inventory is primarily held toa. take advantage of diseconomies of scale and increase cost within the supply chain.b. take advantage of diseconomies of scale and reduce cost within the supply chain.c. take advantage of economies of scale and increase cost wit

25、hin the supply chain.d. take advantage of economies of scale and reduce cost within the supply chain.e. None of the above are true.Answer: dDifficulty: Moderate8. Which of the following is not a cost that must be considered in any lot sizing decision?a. Average price per unit purchased, $C/unitb. Fi

26、xed ordering cost incurred per lot, $S/lotc. Holding cost incurred per unit per year, $H/unit/year = hCd. Manufacturing cost per unit, $M/unite. All of the above are costs to be considered.Answer: dDifficulty: Moderate9. The primary role of cycle inventory is to allow different stages in the supply

27、chain toa. purchase product in lot sizes that maximize the sum of the material, ordering, and holding cost.b. purchase product in lot sizes that minimize the sum of the material, ordering, and holding cost.c. sell product in lot sizes that maximize the sum of the material, ordering, and holding cost

28、.d. sell product in lot sizes that minimize the sum of the material, ordering, and holding cost.e. none of the aboveAnswer: bDifficulty: Moderate10. Economies of scale in purchasing and ordering motivate a manager toa. increase the lot size and cycle inventory.b. decrease the lot size and cycle inve

29、ntory.c. eliminate inventory.d. increase the lot size and reduce cycle inventory.e. none of the aboveAnswer: aDifficulty: Moderate11. Which of the following is not a situation in which any stage of the supply chain exploits economies of scale in its replenishment decisions?a. A fixed cost is incurre

30、d each time an order is placed or produced.b. A holding cost is incurred each period for each unit of inventory.c. The supplier offers price discounts based on the quantity purchased per lot.d. The supplier offers short-term discounts or holds trade promotions.e. all of the aboveAnswer: bDifficulty:

31、 Moderate12. The price paid per unit is referred to as a. the material cost and is denoted by C.b. the fixed ordering cost and is denoted by S.c. the holding cost and is denoted by H.d. the purchase price and is denoted by P.e. none of the aboveAnswer: aDifficulty: Moderate13. All costs that do not

32、vary with the size of the order but are incurred each time an order is placed are referred to asa. the material cost and is denoted by C.b. the fixed ordering cost and is denoted by S.c. the holding cost and is denoted by H.d. the purchase price and is denoted by P.e. none of the aboveAnswer: bDiffi

33、culty: Moderate14. The cost of carrying one unit in inventory for a specified period of time, usually one year, is referred to asa. the material cost and is denoted by C.b. the fixed ordering cost and is denoted by S.c. the holding cost and is denoted by H.d. the purchase price and is denoted by P.e

34、. none of the aboveAnswer: cDifficulty: Moderate15. Which of the following would not be an example of a fixed ordering cost?a. administrative cost incurred to place an orderb. trucking cost incurred to transport an orderc. labor cost incurred to receive an orderd. labor cost incurred to manufacture

35、a parte. none of the aboveAnswer: dDifficulty: Moderate16. Which of the following would not be included in holding cost?a. cost of capitalb. cost of physically storing the inventoryc. cost of manufacturingd. cost that results from the product becoming obsoletee. none of the aboveAnswer: cDifficulty:

36、 Moderate17. The total annual cost is the sum of annual material cost, annual order cost, and annual holding cost, and is given asa. TC = CD + (D/Q)S + (Q/2)hC.b. TC = CD + (Q/2)S + (D/Q)hC.c. TC = CDS + D/Q + (Q/2)hC.d. TC = Q/2 + (D/Q)S + (CD)hC.e. none of the aboveAnswer: aDifficulty: Hard18. The

37、 optimal lot size is referred to as the economic order quantity (EOQ). It is denoted by Q* and is given by the equationa. Q* = 2DS/hC.b. Q* = 2hC.c. Q* = 2DS.d. Q* = 2DS/hC.e. none of the aboveAnswer: dDifficulty: Moderate19. Total ordering and holding costsa. are relatively stable.b. are relatively

38、 stable around the economic order quantity.c. are relatively unstable around the economic order quantity.d. are unstable.e. none of the aboveAnswer: bDifficulty: Easy20. If demand increases by a factor of k, the optimal lot size increases by a factor ofa. k.b. k/2.c. k + 2.d. k-squared.e. the square

39、 root of k.Answer: eDifficulty: Hard21. If demand increases by a factor of k, the number of orders placed per year should increase by a factor ofa. k.b. k/2.c. k + 2.d. k-squared.e. the square root of k.Answer: eDifficulty: Moderate22. To reduce the optimal lot size by a factor of k, the fixed order

40、 cost S must bea. increased by a factor of k.b. increased by a factor of k-squared.c. reduced by a factor of k-squared.d. reduced by a factor of the square root of k.e. reduced by a factor of k.Answer: cDifficulty: Moderate23. Aggregating across products, retailers, or suppliers in a single order al

41、lows fora. an increase in lot size for individual products.b. an increase in customer demand.c. a reduction in holding cost per unit.d. a reduction in lot size for individual products.e. a reduction in purchase price per unit.Answer: dDifficulty: Hard24. Aggregating across products, retailers, or su

42、ppliers in a single order allows for a reduction in lot size for individual products becausea. fixed ordering and transportation costs are now charged to retailers.b. fixed ordering and transportation costs are now charged to suppliers.c. fixed ordering and transportation costs are now spread across

43、 multiple products, retailers, or suppliers.d. holding costs are now charged to retailers or suppliers.e. holding costs are now spread across multiple products, retailers, or suppliers.Answer: cDifficulty: Moderate25. A key to reducing cycle inventory isa. the reduction of holding cost.b. the reduct

44、ion of manufacturing cost.c. the reduction of lot size.d. the reduction of warehouse space.e. all of the aboveAnswer: cDifficulty: Moderate26. A key to reducing lot size without increasing costs is toa. reduce the holding cost associated with each lot.b. reduce the fixed cost associated with each lo

45、t.c. reduce the material cost associated with each lot.d. reduce the manufacturing cost associated with each lot.e. increase the holding cost associated with each lot.Answer: bDifficulty: Moderate27. A price discount where the pricing schedule offers discounts based on the quantity ordered in a sing

46、le lot isa. customer based.b. lot size based.c. supplier based.d. volume based.e. none of the aboveAnswer: bDifficulty: Easy28. A price discount where the discount is based on the total quantity purchased over a given period, regardless of the number of lots purchased over that period isa. customer

47、based.b. lot size based.c. supplier based.d. volume based.e. none of the aboveAnswer: dDifficulty: Moderate29. Pricing schedules with all unit quantity discounts encourage retailers toa. decrease the size of their lots.b. increase the size of their lots.c. decrease the size of their inventory.d. inc

48、rease the price of their products.e. none of the aboveAnswer: aDifficulty: Easy30. Marginal unit quantity discounts have also been referred to asa. all unit quantity discounts.b. basic quantity discounts.c. elevated quantity discounts.d. multi-block tariffs.e. tariffs.Answer: dDifficulty: Moderate31

49、. In the pricing schedule for marginal unit quantity discounts a. the average cost of a unit decreases at a breakpoint.b. the average cost of a unit increases at a breakpoint.c. the marginal cost of a unit decreases at a breakpoint.d. the marginal cost of a unit increases at a breakpoint.e. the aver

50、age cost and the marginal cost of a unit decrease at a breakpoint.Answer: cDifficulty: Moderate32. Quantity discounts lead toa. a significant buildup of cycle inventory in the supply chain.b. a slight buildup of cycle inventory in the supply chain.c. a decrease in cycle inventory in the supply chain

51、.d. minor fluctuations of cycle inventory in the supply chain.e. a major drop in cycle inventory in the supply chain.Answer: aDifficulty: Moderate33. For commodity products where price is set by the market, manufacturers can use lot size based quantity discounts toa. achieve coordination in the supp

52、ly chain and decrease supply chain cost.b. relax coordination in the supply chain and increase supply chain cost.c. relax coordination in the supply chain and decrease supply chain cost.d. achieve coordination in the supply chain and decrease supply chain cost.e. None of the above are accurate.Answe

53、r: dDifficulty: Easy34. In a supply chain where each stage of the supply chain independently makes its pricing decisions with the objective of maximizing its own profit,a. supply chain profit is lower than a coordinated solution.b. supply chain profit is higher than a coordinated solution.c. supply

54、chain profit is about the same as a coordinated solution.d. supply chain profit will be maximized.e. None of the above are accurate.Answer: aDifficulty: Easy35. For products where the firm has market power, coordination in the supply chain can be achieved and supply chain profits maximized through t

55、he use of a. two-part tariffs or volume based quantity discounts.b. marginal unit quantity discounts.c. all unit quantity discounts.d. basic quantity discounts.e. none of the aboveAnswer: aDifficulty: Easy36. The practice where a firm charges differential prices to maximize profits isa. lot pricing.

56、b. marginal pricing.c. price incrimination.d. price discrimination.e. all of the aboveAnswer: dDifficulty: Moderate37. Discounts related to price discrimination will bea. volume based.b. unit based.c. marginally based.d. lot size based.e. none of the aboveAnswer: aDifficulty: Hard38. The goal of trade promotions is toa. influence retailers to act in a way that helps the retailer achieve its objectives.b. influence retailers to act in a way that helps the manufacturer achieve its objectives.c. influence retailers to act in a way tha