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QUESTION: 146

An SKU costing $10 is ordered in quantities of 500 units, annual demand is 5200 units, carrying costs are 20%, and the cost of placing an order is $50. Calculate annual inventory carrying cost

$500
$550
$450
$400

Answer(s): A

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QUESTION: 147

Physical distribution contributes to:

Creating demand
Prompt delivery
Product availability and accurate order filling
All of these

Answer(s): D

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QUESTION: 148

______________ is responsible for producing a set of specifications that manufacturing can use to make the product. Products must be designed to be:

· Functional
· Capable of low-cost processing

Product Design
Production Plan
Marketing mix
All of these

Answer(s): A

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QUESTION: 149

Much evidence is available that this ideal information system integration is not evolving within industry supply chains, since:

Manual data entry is widespread, even when machine sources are available; critical information is often manually re-entered at many points in the chain
Interventions from purchasing clerks, order processors, and expediters are required to maintain supply-chain information flows
The use of translators to convert data from one format to another is almost universal, even between systems that are nominally compliant with established protocols
All of these

Answer(s): D

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