Question

20. In order to cover anticipated changes in demand/supply a firm will apply the logic of ________ inventory.

anticipated

best guess

coordinated

none of the above

22. One of the differences between Lean and Six Sigma is that Lean __________ .

is more data driven
		involves more specialized full-time personnel
		involves large projects
		none of the above

24. There are ___________ types of inventory costs.

		5
		4
		3
		2

26. When outsourcing only the _____ must be considered.

		total cost
		price of purchasing
		market conditions
		none of the above

Answer 1

20. In order to cover anticipated changes in demand/supply a firm will apply the logic of anticipated inventory

Ans - anticipated

As anticipated inventory is basically refers to the excess amount of inventory that being kept in order to meet the fluctuated demand of the customers regarding any product.

22.  One of the differences between Lean and Six Sigma is that Lean

Ans - none of these

Difference between lean and six sigma is that lean focuses on the elimination of waste during production system while six sigma focuses on maintaining the quality of the product and overall processes by taking needed steps regarding the same.

Lean focuses on eliminate waste whereas six sigma focuses on removing variability throughout the whole process.

24. There are three types of inventory cost.

Ans - 3

The three types of inventory cost are are ordering cost, holding cost, stock out cost.

Ordering cost include all the fee and expenses related to ordering any product. Example of ordering cost are like transportation cost, receiving cost and such more.

Holding cost include the cost which which is the include while storing the inventory before its sale. Example of holding cost are storage space cost, inventory service cost etc.

Stock out cost occur when business become out of stock for any of the reasons. Stock out cost occurs when business have to do emergency shipment, or any disrupted production occur etc.

26. When outsourcing only the _______ must be considered.

Answer - none of the above

When outsourcing is done various risks are there which should be taken into consideration like maintaining proper related business reputation, core activities of the organisation could not be outsourced, etc.