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1. As the amount of on hand inventory increases,

A. shortage cost increase and carrying costs increase

B. Shortage cost decrease and carrying costs increase

C. both shortage cost and carrying cost increase

D. both shortage cost and carrying cost decrease

2. Lead production is not the best choice for high bolume repeitive items where mass production is more common

True or False

3. For a set number of jobs to be processed on one machine the sequencing rule that will minimize average job completion time is

A. FCFS

B. LPT

C. SPT

D. DDATE

4. Inventory is a stok of items kept by an organiztaion to meet external demand only.

True or False

5. A supply chain cn be viewed as an integrated group of processes to source, make, and deliver products.

True or False

6. Shortage costs have an inverse relationship to carrying costs.

True or False

7. Costs resulting from lost sales becuase demand cannot be met are easier to determine than carrying costs or ordering costs.

True or False

8. Software that integrates the components of an organization by sharing and organizing information data is called ERP systems.

True or False.

9. The three types of inventory costs identified by our authors include all of the following except,

A. Carrying

B. Ordering

C. shortage

D. handling

10. A tracking signal is computed by

A. multiplying the cumulative error by MAD

B. multplying the absolute error by MAD

C. dividing MAD by the cumulative absolute error

D. dividing the cumulative error by MAD

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