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QUESTION: 504

A firm has a multilevel distribution network with a central distribution center (DC) and several regional distribution centers. It would be most appropriate to store products with which of the following combinations of cost and demand characteristics only in the central distribution center?

Inexpensive with sporadic customer demand
Inexpensive with seasonal customer demand
Moderate cost with high customer demand
Expensive with sporadic customer demand

Answer(s): D

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QUESTION: 505

Forecasting methods can be grouped into which of the following categories?

Seasonal, trend, and promotional events
Moving average, exponential smoothing, and Holt-Winters
Qualitative, extrinsic, and intrinsic
Annual, monthly, and dally requirements

Answer(s): C

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QUESTION: 506

Which of the following tactics effectively reduces the bullwhip effect?

Reducing lead times among trading partners
Buying large quantities for a substantial discount
Increasing safety stock levels
Increasing the level of advertising

Answer(s): A

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QUESTION: 507

Which of the following risks is most likely to occur when implementing a global sourcing strategy?

Internal operating costs will increase due to the additional time to process purchase orders across time zones and cultural barriers.
Achieving economies of scale will be difficult if global shipments are not consolidated at shipping origin.
Inventory carrying costs will increase along with freight costs due to increasing delivery transit times.
Customers could purchase their products and materials elsewhere due to the fact that core operations were outsourced abroad.

Answer(s): B

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