Question

1.Which of the following is NOT an inventory performance measure?
a. average days of inventory turnover
b. average aggregate inventory
c. average cycle service level
d. all of the above are inventory performance measures

2. Which of the following is NOT true of inventory management?
a.Inventory management is a data-driven approach to making intelligent cost and customer service
driven decisions.

b.The goal, in most cases, is to generate revenue by minimizing stock-outs while keeping costs at a
reasonable level.
c. If Jimmy became unavailable all of a sudden, the business has no inventory management system.
d. Smaller-sized operations are especially vulnerable to inventory risks.

3.XYZ Computing has been trying to reduce their inventory holding costs. Which of the following
practices would NOT help them achieve this goal?
a. de-cluttering their warehouse so as to have better inventory accountability
b. ordering a larger number of the hottest selling computers
c. using RFID chips to track the movement of inventory
d. none of the above will help

4.During finals week, students arrive randomly at the help desk of the computer lab. There is only one
technician due to budget cuts, and the time required to provide service varies from student to
student. The average arrival rate is 15 students per hour, and the average service rate is 20
students per hour. Arrival rates have been found to follow the Poisson distribution, and the service
times follow the exponential distribution. What is the average time spent waiting in line for each
student? What is the average number of students in the line?
a. 2.25 students
b. 5 students
c. 15 students
d. 20 students

Answer 1

As per policy only first question will be answered

1 Answer is  (c) average cycle service level is not a performance indicator. Rather it is a conscious strategic choice.

Option (a) is a performance measure which is aimed to increase

Option (b) is a performance measure which is aimed to be decreased