Question

In: Operations Management

1.Tier 2 suppliers are primary suppliers to manufacturers. True or False? 2. Which of the following...

1.Tier 2 suppliers are primary suppliers to manufacturers. True or False?

2. Which of the following statements is TRUE regarding tier 1 suppliers?

A. Tier 1 suppliers are the starting point of a supply chain.

B. Tier 1 suppliers are the primary suppliers to tier 2 suppliers.

C. Tier 1 suppliers are the primary suppliers to retailers.

D. Tier 1 suppliers are the primary suppliers to manufacturers.

3. Company A fails to satisfy some 15% of customers’ orders last month. What is Company A’s in-stock probability?

A. 15%

B. 85%

C. 100%

D. Cannot be determined

4. A wide and short density function has a large ____________ relative to the _________.

A. standard deviation, mean

B. standard deviation, outcome

C. mean, standard deviation

D. mean, outcome

5 Store A uses the newsvendor model to manage its inventory. Demand for its product is normally distributed with a mean of 500 and a standard deviation of 300. Store A purchases the product for $10 each unit and sells each for $25. Inventory is salvaged for $5. What is its maximum profit?

A. $5000

B. $7500

C. $8000

D. $12,500

Expert Solution

1.Tier 2 suppliers are primary suppliers to manufacturers

Answer:- False

Reason:- The tire 1 suppliers are mainly the primary suppliers to manufacturers , similarly, tire 2 suppliers are primary suppliers o tire 1 suppliers.

2. Which of the following statements is TRUE regarding tier 1 suppliers?

Answer:- D. Tier 1 suppliers are the primary suppliers to manufacturers.

Reason:- A tire one supplier can be seen as the most vital element in the supply chain and it supplies the components and raw materials directly to the manufacturer and thus it is the primary supplier to the manufacturers.

3:- Company A fails to satisfy some 15% of customers’ orders last month. What is Company A’s in-stock probability?

Answer:- 85%

Reason:- In-stock probability = Total percentage of inventory – failure of satisfying the orders

In-stock probability =100-15

In-stock probability =85%

4. A wide and short density function has a large ____________ relative to the ________

Answer:- A. standard deviation, mean

Reason:- A large standard deviation produces a bell function which is mainly short and wise in size in comparison to its mean. On the other hand, a tall and narrow curve is created by the small standard deviation.

keosha answered 7 months ago

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