Question

operation fundamental thx a lot

1. When defining the supply chain, which does NOT belong?

	A.	A global network of organizations and activities that supplies a firm with goods and services.
	B.	Specialize expert knowledge, instant communications, and cheaper transportation.
	C.	Organizations rely on other organization’s product and services to reduce cost.
	D.	Raw materials received and stored in inventory for operations.

2.

Units that an organization will carry over and above Q in order to meet contingency is known as?

	A.	Overflow stock
	B.	Extra inventory
	C.	Safety Stock
	D.	Safety inventory

3.

The following are components of what type of inventory cost: finance charges, warehousing, and shelf space, handling equipment, bookkeeping, insurance, taxes or spoilage?

	A.	Total cost
	B.	Ordering cost
	C.	Holding cost
	D.	Maintenance cost

4.

The objective of Inventory Management is to……

	A.	Ensure product is available to meet customer demands.
	B.	Strike a balance between inventory investment and customer service.
	C.	Minimize costs of buy raw materials.
	D.	Maintain enough raw materials for production.

5.

Method used to determine the best routes to ship from several points of supply (sources) to points of demands (destination) to minimize production and shipping costs.

	A.	The Factor- Rating Method
	B.	Location Cost-Volume Analysis
	C.	Center-of-Gravity Method
	D.	Transportation Model

6.

What type of decision would taxes, labor availability and environmental regulations part of?

	A.	Site
	B.	Region
	C.	Country
	D.	Rural

7.

Inventory management solves what two basic issues?

	A.	The amount of raw material needed for production and customers.
	B.	The amount of raw material needed for production and customers.
	C.	How much and when to order.
	D.	How much goods and services are needed to meet demand and how to deliver the goods and services.

Answer 1

Answer 1 : The given options are evaluated as follows :

1. This statement is correct as a Supply chain is a global network of organizations facilitating the flow of goods and services. Hence, this option is rejected.
2. A supply chain involves use of expert knowledge, instant communication, and cheaper transportation. Hence, this option is also rejected.
3. In a supply chain, organizations rely on other organizations but it may or may not lead to reduced costs because each organization in the chain adds its margin leading to an increase in the cost of the product being sold. So, this Option is the correct one.  
4. The use of raw materials received for operations is a part of the supply chain and hence, this option is also rejected.

Conclusion: Option “ C “ is the correct answer.