PQ1-Multiple-choice question In a mixed static method, (linear) regression analy

Question

PQ1-Multiple-choice question In a mixed static method, (linear) regression analysis is used to estimateof demands. A. level B. trend C. seasonality D. all of the above E. only A and B If demands are certain (no uncertainty), average inventory is same as. A. cycle inventory B. safety inventory C. the sum of cycle inventory and safety inventory 6 If demands are uncertain, average inventory is same as . A. cycle inventory B. safety inventory C. the sum of cycle inventory and safety inventory Safety inventory exists in order to_ A. accommodate uncertainty of demands B. accommodate uncertainty of lead time C. optimize inventory-replenishment lot size to exploit economies of scale D. all of the above E. only A and B 8 If demands at distributed locations are aggregated at a centralized location, the standard deviation of demand at the centralized location is calculated by simply 10 adding the standard deviations of demands at the distributed locations. T. True F. False

Explanation / Answer

3. B. Trend of demands is estimated in a mixed static method using linear regression analysis.

6. A. When the demand is constant, average inventory is same as cycle inventory.

7. C. When the demand is uncertain, average inventory is same as the sume of cycle inventory and safety inventory

8. E. Safety inventory exists in order to accommodate uncertainty of demand and lead time.

10. F. It is not possible to add two standard deviations and get the standard deviation of the centralized location. So, the answer is False.

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