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6. The Weighted Scoring technique for selecting a warehouse location ...

  • assumes that quantity transported is fixed.
  • assigns weights of importance to different factors to score each location, then ranks them.
  • assumes that cost change is linear.
  • determines location by minimising distribution costs.

7. Small lot sizes (frequent orders) :

  • mean higher holding costs.
  • mean higher ordering costs and lower holding costs.
  • lead to higher average inventory level.
  • lead to lower ordering costs.

8. Green logistics ...

  • reduce usage of materials.
  • all of these.
  • reduce energy usage of logistics activities.
  • aim to minimise ecological impact of logistics.

9. A disadvantage of outsourcing is ...

  • freed up resources due to less investment.
  • increased access to new tech.
  • a risk of supply chain disruptions.
  • economies of scale in supplier.

10. Which of these is not an advantage of outsourcing?

  • Access to new/changing tech.
  • Possible failures in quality and delivery.
  • Freed up resources due to lower investment.
  • Lower total costs.

11. Decisions crucial to supply base optimisation are :

  • spend analysis, total number of suppliers, single vs multiple suppliers.
  • warehouse vs distribution centre, total number of suppliers, spend analysis.
  • spend analysis, total number of suppliers, demand monitoring.
  • total number of suppliers, single vs multiple suppliers, warehouse vs distribution centre.

12. Issues to consider with warehouses include ...

  • Owned by single firm vs variety of firms.
  • all of these.
  • Internal warehouses vs outside distributor.
  • manufacturing strategy (make-to-stock vs make-to-order).

13. Risks of offshoring include ...

  • improving capabilities in offshore regions.
  • airfreight costs to overcome delivery or quality problems.
  • less trade regulation overseas.
  • lower costs overseas.

14. Advantages of outsourcing include ...

  • providing better customer service.
  • reduced overall costs (capital, taxes, tariff barriers etc).
  • all of these.
  • risk is spread and shared.

15. Cycle inventory is used to ...

  • allow economic production and purchase.
  • cover anticipated changes in demand/supply.
  • provide for transit.
  • protect against uncertainties.

16. Fluctuations in demand behaviour in the form of upstream oscillations is known as ...

  • the Porter effect.
  • the Doppler effect.
  • the Forrester/bullwhip effect.
  • the Smith phenomenon.

17. Too much offshoring may lead to ...

  • neither of these.
  • difficulty in balancing various technical, cost and performance objectives simultaneously.
  • both of these.
  • less internal staff capability.

18. Purposes of inventories include ...

  • allowing economic production and purchase.
  • covering anticipated changes in supply/demand.
  • all of these.
  • protection against uncertainties (demand, lead times, schedule changes etc).

19. Inventory turnover ...

  • compares annual sales with amount of average inventory held throughout year.
  • all of these.
  • is used to measure a firm's performance in inventory management,
  • shows that a higher turnover lowers the firm's inventory costs.

20. Independent demand ...

  • is based on market demand, requires forecasting and is independent of other items.
  • includes components of finished products.
  • requires calculation instead of forecast.
  • is where demand is a known function of independent demand items.