Chapter 10
Managing Economies of Scale in the Supply Chain: Cycle Inventory
True/Fal
1. A lot or batch size is the quantity that a stage of the supply chain either produces or purchas at a given time.
Answer: True
Difficulty: Moderate
2. Cycle inventory is the physical inventory in the supply chain due to either production or purchas demanded by the customer.
Answer: True
Difficulty: Moderate
3. When demand is steady, cycle inventory and lot size are related as follows:
Cycle Inventory = Lot Size x 2 = Q*2.
Answer: Fal
Difficulty: Moderate
4. Cycle inventory is primarily held to take advantage of economies of scale and reduce profit within the supply chain.
Answer: Fal
Difficulty: Easy
5. Increasing the lot size or cycle inventory often decreas the cost incurred by different stages of a supply chain.auditor
Answer: True
Difficulty: Moderate
6. The total annual cost is the sum of annual material cost, annual order cost, and annual holding cost, and is given as TC = CD + (D/Q)S 圣诞英语+ (Q/2)hC.
Answer: True
oandaDifficulty: Moderate
7. The optimal lot size is referred to as the economic order quantity (EOQ). It is denoted by Q * and is given by the equation: Q* = 2DS/hC.
Answer: True
Difficulty: Moderate
8. Total ordering and holding costs are unstable around the economic order quantity.
Answer: Fal
Difficulty: Moderate
9. To reduce the optimal lot size by a factor of k, the fixed order cost S must be reduced by a factor of k.
Answer: Fal
Difficulty: Moderate英译汉在线翻译
10. Aggregating across products, retailers, or suppliers in a single order allows for a reduction in lot size for individual products becau fixed ordering and transportation costs are now spread across multiple products, retailers, or suppliers.
Answer: True
Difficulty: Moderate
11. A key to reducing cycle inventory is the reduction of lot size.
Answer: True
Difficulty: Easy
12. A key to reducing lot size without increasing costs is to reduce the holding cost associated with each lot.
Answer: Fal
Difficulty: Moderate
13. Reduction of fixed cost may be achieved by aggregating lots across multiple products, customers, or suppliers.
企业运营管理培训Answer: True
Difficulty: Easy
14. A discount is volume-bad if the pricing schedule offers discounts bad on the quantity ordered in a single lot.
Answer: Fal
Difficulty: Hard
15. Pricing schedules with all unit quantity discounts encourage retailers to increa the size of their lots, which reduces the average inventory and flow time in a supply chain.
Answer: Fal
Difficulty: Moderate
16. The supply chain profit is higher if each stage of the supply chain independently makes its pricing decisions with the objective of maximizing its own profit.
Answer: Fal
Difficulty: Moderate中国旅游景点介绍
17. Discounts related to price discrimination will be lot size bad.
Answer: Fal
Difficulty: Hard
blowaway18. Price discrimination is the practice where a firm charges differential prices to maximize profits.
Answer: True
Difficulty: Easy
19. Although a forward buy is often the retailer’s appropriate respon and increas their own profits, it usually increas demand variability with a resulting increa in inventory and flow times within the supply chain.
Answer: True
Difficulty: Moderate
20. Trade promotions lead to a significant increa in lot size and cycle inventory becau of forward buying by the retailer.
Answer: True
Difficulty: Moderate
Essay/Problems
1. Discuss the role of cycle inventory in the supply chain.
Answer: The primary role of cycle inventory is to allow different stages in the supply chain to purcha product in lot sizes that minimize the sum of the material, ordering, and holding cost. If a manager were considering the holding cost alone, he or she would reduce the lot size and cycle inventory. Economies of scale in purchasing and ordering, however, motivate a manager to increa the lot size and cycle inventory. A manager must make the trade-off that minimizes the total cost when making the lot sizing decision. Ideally, cycle inventory decisions should be made considering the total cost across the entire supply chain. In practice, however, each stage often makes its cycle inventory decisions independently. As we discuss later in the chapter, this practice increas the level of cycle inventory as well as the total cost in the supply chain.
watergatescandal
Any stage of the supply chain exploits economies of scale in its replenishment decisions in the following three typical situations:
1. A fixed cost is incurred each time an order is placed or produced.
2. The supplier offers price discounts bad on the quantity purchad per lot.
3. The supplier offers short-term discounts or holds trade promotions.
Cycle inventory exists in a supply chain becau different stages exploit economies of scale to lower total cost. The costs considered include material cost, fixed ordering cost, and holding cost. The supply chain operation pha operates on a weekly or daily time horizon and deals with decisions concerning individual customer orders.
mouthful
Difficulty: Hard
1。讨论的作用，供应链中的库存周期。
答：主要作用是使库存周期不同阶段的供应链采购产品在许多大小，最小值的材料，排序，
和持有成本。如果一个经理正在考虑持有成本，他或她会减少很多的大小和周期库存。经济规模采购和订购，然而，激励经理提高该地段的大小和周期库存。经理必须权衡最小的总成本时，使批量决策。理想情况下，周期库存的决定应考虑到在整个供应链总成本。在实践中，然而，每一个阶段往往使其周期库存决定独立。当我们讨论在本章后面，这种做法增加了水平循环库存以及在供应链总成本。
