(Solved): 19 88 A seasonal product has an understocking cost that is greater than its overstocking cost. If t ...

19 88 A seasonal product has an understocking cost that is greater than its overstocking cost. If the variability in demand is reduced through better forecasting, then the firm will end up ordering a larger quantity. True O False 11 8 ? in orders increases at The bullwhip effect occurs when the supply chain. levels of the (note: higher - closer to manufacturer; lower - closer to consumer) flow rate, lower flow rate, higher variability, higher variability, lower 20 8% A retailer uses the Newsvendor model to decide how many swimsuits to order for the summer season. If the supplier offers a buyback contract and everything else stays the same, the retailer will order fewer swimsuits. O True False 17 CO wo In the continuous review model, the decision on when to place a replenishment order depends on all of the following EXCEPT the average demand o the amount of safety stock needed o the replenishment lot size o the lead time 18 88 If a customer comes to Big Al's tire shop looking for a tire that is out-of-stock, the manager will use a computer system to find the tire in-stock at a nearby Big Al's store to avoid losing the sale. This is an example of physical aggregation of inventory. O True O False 17 84 In the continuous review model, the decision on when to place a replenishment order depends on all of the following EXCEPT the average demand o the amount of safety stock needed o the replenishment lot size the lead time A firm wants enough safety stock to ensure a 90% CSL for a continuously stocked product. To achieve this, o the reorder point should be 90% larger than the average demand during the lead time o the reorder point should be large enough to meet 90% of the demand during the lead time, with 10% remaining unmet None of these. o the reorder point should be large enough to meet all the demand during the lead time with 90% probability, with a 10% chance of stockout 14 881 Bonobos provides sample shirts in different sizes for customers to try on, but they do not carry any inventory of the shirts for sale in any of their stores. Instead, the customer's desired shirt will be shipped from a single, central warehouse, where all the inventory is kept. This is an example of which of the following? o virtual aggregation through product substitution o backordering o physical aggregation o virtual aggregation through information sharing