111. Daisy Co wishes to minimise its inventory costs of material X. Ordering costs are $10 per order and holding costs are $1.2 per unit per year. Daisy Co estimates annual demand for this material to be 5,400 units. This material has a lead time of 2 weeks and has a usage during the lead time from 200 units to 700 units.
Total ordering and holding costs would be:
a. $360
b. $540
c. $198
d. $330
112. Customers that require a low price and lots of customized service are:
a. high cost to serve and high margin
b. low cost to serve and high margin
c. low cost to serve and low margin
d. high cost to serve and low margin
113. High cost to serve customers:
a. have little to no pre-sales support
b. order standard products
c. have high order quantities
d. have large amounts of post sales support
114. Persuading customers to use a greater score of the company's products and services is an example of:
a. Process improvements
b. The pricing waterfall
c. Managing relationships
d. Activity based pricing
115. Customer financial performance:
a. can be improved by offering special features, and highly responsive customer service
b. are best measured with financial metrics
c. is improved by focusing on a combination of financial and nonfinancial metrics
d. are reflected on the balanced scorecard as part of the learning and growth perspective
116. Repeated or increased purchases of the product or service is known as:
a. customer loyalty
b. the net promoter score
c. profitability
d. customer satisfaction
117. Daisy Co wishes to minimise its inventory costs of material X. Ordering costs are $10 per order and holding costs are $1.2 per unit per year. Daisy Co estimates annual demand for this material to be 5,400 units. This material has a lead time of 2 weeks and has a usage during the lead time from 200 units to 700 units.
The re-order level (with no safety inventory) should be:
a. 900
b. 540
c. 9000
d. 10,800
118. Daisy Co wishes to minimise its inventory costs of material X. Ordering costs are $10 per order and holding costs are $1.2 per unit per year. Daisy Co estimates annual demand for this material to be 5,400 units. This material has a lead time of 2 weeks and has a usage
during the lead time from 200 units to 700 units.
The economic order quantity should be:
a. 500
b. 4500
c. 300
d. all are in correct
119. Landers Corporation has the information of quality cost for the year 20x1 as follows:
Cost of quality ($)
Material disposals: 200,000
Quality planning: 60,000
Lost contribution margin from current and future sales: 1,400,000
Lost contribution margin from scrapped products: 400,000
Inspecting finished goods: 120,000
Testing equipment: 40,000
Quality reporting: 200,000
Warranty claims: 100,000
% Appraisal costs/Total cost of quality:
a. 68%
b. 14.4%
c. 6.4%
d. 24%
120. A ________ identifies potential causes of defects using a diagram that resembles the bone structure of a fish.
a. time driver
b. cause-and-effect diagram
c. safety stock
d. pareto diagram
Total ordering and holding costs would be:
a. $360
b. $540
c. $198
d. $330
112. Customers that require a low price and lots of customized service are:
a. high cost to serve and high margin
b. low cost to serve and high margin
c. low cost to serve and low margin
d. high cost to serve and low margin
113. High cost to serve customers:
a. have little to no pre-sales support
b. order standard products
c. have high order quantities
d. have large amounts of post sales support
114. Persuading customers to use a greater score of the company's products and services is an example of:
a. Process improvements
b. The pricing waterfall
c. Managing relationships
d. Activity based pricing
115. Customer financial performance:
a. can be improved by offering special features, and highly responsive customer service
b. are best measured with financial metrics
c. is improved by focusing on a combination of financial and nonfinancial metrics
d. are reflected on the balanced scorecard as part of the learning and growth perspective
116. Repeated or increased purchases of the product or service is known as:
a. customer loyalty
b. the net promoter score
c. profitability
d. customer satisfaction
117. Daisy Co wishes to minimise its inventory costs of material X. Ordering costs are $10 per order and holding costs are $1.2 per unit per year. Daisy Co estimates annual demand for this material to be 5,400 units. This material has a lead time of 2 weeks and has a usage during the lead time from 200 units to 700 units.
The re-order level (with no safety inventory) should be:
a. 900
b. 540
c. 9000
d. 10,800
118. Daisy Co wishes to minimise its inventory costs of material X. Ordering costs are $10 per order and holding costs are $1.2 per unit per year. Daisy Co estimates annual demand for this material to be 5,400 units. This material has a lead time of 2 weeks and has a usage
during the lead time from 200 units to 700 units.
The economic order quantity should be:
a. 500
b. 4500
c. 300
d. all are in correct
119. Landers Corporation has the information of quality cost for the year 20x1 as follows:
Cost of quality ($)
Material disposals: 200,000
Quality planning: 60,000
Lost contribution margin from current and future sales: 1,400,000
Lost contribution margin from scrapped products: 400,000
Inspecting finished goods: 120,000
Testing equipment: 40,000
Quality reporting: 200,000
Warranty claims: 100,000
% Appraisal costs/Total cost of quality:
a. 68%
b. 14.4%
c. 6.4%
d. 24%
120. A ________ identifies potential causes of defects using a diagram that resembles the bone structure of a fish.
a. time driver
b. cause-and-effect diagram
c. safety stock
d. pareto diagram
