Question

1) The arrival rate at the second server in a two stage serial queuing system is

1. Same as arrival rate at server 1
2. Minimum of service rate and arrival rate at server 1
3. Cannot be determined

2) Which of the following pertains to an efficient supply chain?

1. It deals with innovative products
2. The product life cycle will be short
3. It is worthwhile to invest in good forecasting systems
4. All of the above

3)Which of the following costs do not come under inventory carrying cost calculation?

1. Investment in a software for updating stock position online
2. Investment in stores space
3. Salaries of procurement personnel
4. Cost of maintaining the inventory stocks

4)Which of the following will have lesser bullwhip effect in a supply chain?

1. Supply Chain co-ordination
2. Opening more stocking points closer to the point of consumption
3. Empowering the lower echelons of the inventory to take decisions on fulfilling the demand
4. All of the above

5)What is the effect of delayed differentiation strategy?

1. The number of variants offered will be reduced
2. The inventory carrying costs will come down
3. Production Planning and Control will become more difficult
4. Bullwhip effect will be more pronounced

6)What changes can you envisage in economic order quantity based planning when the demand for the item increases by 5%?

1. The economic order quantity will come down by (5%)
2. The carrying cost will increase by 1 (5%)
3. The total cost of the plan will go up by (5%)
4. The total cost of the plan will go up by 5%

Answer 1

Answer 1= Minimum of service rate and arrival rate at server 1

Reason- The arrival rate at the second server will depend on the service rate of first server

Answer 2=All of the above

Reason= Efficient supply chain must have an accurate forecasting method and it facilitates the innovative products

Answer 3= Investment in a software for updating stock position online

Reason- Investment in a software for updating stock position online is not the part of carrying cost. The inventory carrying cost mainly includes the payment of the storage space, salaries of the workers, insurance and so on'

Answer 4-All of the above

Reason- Bullwhip effect can be minimized by having better coordination and effective communication