本文格式为Word版，下载可任意编辑供应链管理 Chapter 11 Managing Uncertainty in the Supply Chain: Safety Inventory True/False 1. Safety inventory is inventory carried for the purpose of satisfying demand that exceeds the amount forecasted for a given period. Answer: True Difficulty: Moderate 2. Raising the level of safety inventory increases product availability and thus the margin captured from customer purchases. Answer: True Difficulty: Moderate 3. Carrying excessive inventory can help counter demand volatility when new products come on the market. Answer: False Difficulty: Moderate 4. The appropriate level of safety inventory is determined by the uncertainty of both demand and supply and the desired level of cycle inventory. Answer: False Difficulty: Moderate 5. As the uncertainty of supply or demand grows, the required level of safety inventories increases. Answer: True Difficulty: Moderate 6. As the desired level of product availability increases, the required level of safety inventory decreases. Answer: False Difficulty: Easy 7. Lead time is the gap between when an order is placed and when it is received. Answer: True Difficulty: Easy 8. The coefficient of variation measures the size of the relative certainty of cycle inventory. Answer: False Difficulty: Easy 9. Product availability reflects a firms ability to fill a customer order out of available inventory. Answer: True Difficulty: Moderate 10. Order fill rate is the fraction of product demand that is satisfied from product in inventory. Answer: False Difficulty: Moderate Product fill rate is the fraction of product demand that is satisfied from product in inventory. Answer: True Difficulty: Moderate The distinction between product fill rate and order fill rate is significant in a single product situation. Answer: False Difficulty: Hard Tracking order fill rates is important when customers place a high value on the entire order being filled simultaneously. Answer: True Difficulty: Easy With continuous review, inventory is continuously tracked and an order for a lot size Q is placed at regular intervals of time. Answer: False Difficulty: Hard With periodic review, inventory status is checked at regular intervals and an order is placed to raise the inventory level to a specified threshold. Answer: True Difficulty: Hard The expected shortage per replenishment cycle (ESC) is the average units of demand that are satisfied from inventory in stock per replenishment cycle. Answer: False Difficulty: Hard A shortage occurs in a replenishment cycle only if the demand during the lead time exceeds the ROP. Answer: True Difficulty: Moderate The required safety inventory grows rapidly with a decrease in the desired product availability. Answer: False Difficulty: Easy In most supply chains, the key to reducing the underlying forecast uncertainty is to link all forecasts throughout the supply chain to customer demand data. Answer: True Difficulty: Moderate 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. A reduction in supply can help dramatically reduce safety inventory required without hurting product availability. Answer: False Difficulty: Moderate Aggregation reduces the standard deviation of demand only if demand across the regions being aggregated is not perfectly positively correlated. Answer: True Difficulty: Moderate The lower the coefficient of variation of an item, the greater the reduction in safety inventories as a result of centralization. Answer: False Difficulty: Hard Manufacturer-driven substitution increases overall profitability for the manufacturer by allowing some aggregation of demand, which reduces the inventory requirements for the same level of availability. Answer: True Difficulty: Moderate Periodic review policies require more safety inventory than continuous review policies for the same level of product availability. Answer: True Difficulty: Easy When using a continuous review policy, a manager has to account for the uncertainty of demand during the lead time and the review interval. Answer: False Difficulty: Easy 21. 22. 23. 24. 25. Essay/Problems 1. Discuss the role of safety inventory in the supply chain and the trade-offs involved. Answer: The primary role of safety inventory is providing product availability for customers when demand and supply are uncertain. The trade-off that a supply chain manager must consider when planning safety inventory involve product availability and inventory holding costs. On one hand, raising the level of safety inventory increases product availability and thus the margin captured from customer purchases. On the