exam two - omis 340

growth in demand that is leading to greater utilization of existing capacity

Which of the following circumstances would be least likely to lead to a need for a new location?

marketing

For service firms such as banks and supermarkets, location decisions are critical elements of __________blank strategy.

purchase cost

Which of the following is typically the largest of all inventory costs?

C items 

In the A-B-C classification system, items which account for about 15 percent of the annual dollar value, but which account for a majority of the inventory items, would be classified as…

all of these choices are correct

• shift in markets

• growth in product demand

• market expansion

• costs of doing business 

Which of the following is a reason to consider relocation or location expansion?

expected usage during lead time

If no variations in demand or lead time exist, the ROP will equal…

access to end consumers

Which of the following is least important as a consideration for a firm at the beginning of a supply chain?

10

In an A-B-C system, the typical percentage of the number of items in inventory that is classified as A items is about…

A-B-C approach

Classifying inventory according to some measure of importance, and allocating control efforts accordingly

C items

50 to 60 percent of the number of items in inventory 

A items

60 to 70 percent of the annual dollar value

periodic system

Physical count of items in inventory made at periodic intervals

perpetual inventory system

System that keeps track of removals from inventory continuously, thus monitoring current levels of each item.

— an order is placed when inventory drops to a predetermined minimum level

two-bin system

two containers of inventory; reorder when the first one is empty 

universal product code ((UPC)

Bar code printed on a label that has information about the item to which it is attache

radio frequency identification (RFID) tags

A technology that uses radio waves to identify objects, such as goods, in supply chains

102,500 ((10 × 250) + 100,000)

Location choice A has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 250 units?

105,500 ((10 × 550) + 100,000)

Location choice B has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 550 units?