chopra_scm5_tif_ch11.doc

 Supply Chain Management, 5e (Chopra/Meindl) Chapter 11 11 Managing Economies of Scale in the Supply Chain: Cycle Inventory

11.1 True/False Questions 1) Cycle inventory exists because producing or purchasing in large lots allows a stage of the supply chain to exploit economies of scale and increase cost. nswer! F"#$ %iff! & Topic! 11.1 The 'ole of Cycle (nventory in a #upply Chain "earning utcome! %iscuss options for measuring supply supply chain performance &)  lot or batch si*e is the +uantity that a stage of the supply chain either produces or purchases at a given time. nswer! T',$ %iff! & Topic! 11.1 The 'ole of Cycle (nventory in a #upply Chain "earning utcome! %iscuss options for measuring supply supply chain performance -) Cycle inventory is the physical inventory in the supply chain due to either production or or  purchases demanded by the customer. nswer! T',$ %iff! & Topic! 11.1 The 'ole of Cycle (nventory in a #upply Chain "earning utcome! %iscuss options for measuring supply supply chain performance ) The inventory profile is a plot depicting the level of o f inventory over time. nswer! T',$ %iff! 1 Topic! 11.1 The 'ole of Cycle (nventory in a #upply Chain "earning utcome! %iscuss options for measuring supply supply chain performance ) 0hen demand is steady cycle inventory and lot si*e are related as follows! Cycle (nventory 2 "ot #i*e 3 & 2 Q4&. nswer! F"#$ %iff! & Topic! 11.1 The 'ole of Cycle (nventory in a #upply Chain C#5! nalytic #6ills "earning utcome! %iscuss options for measuring supply supply chain performance 7) "ot si*es and cycle inventory do not affect the flow time of material within the supply chain. nswer! F"#$ %iff! 1 Topic! 11.1 The 'ole of Cycle (nventory in a #upply Chain C#5! nalytic #6ills "earning utcome! %iscuss options for measuring supply supply chain performance 1181 Copyright 9 &:1- ;earson $ducation (nc. publishing as ;rentice