Quiz

Choose the appropriate answers from the given alternatives :

1) Risk pooling suggests that demand variability is reduced if one aggregates demand across locations because

  as demand is aggregated across different locations,it becomes more likely that high demand from one customer will be offset by low demand from another.

  less holding cost is incured to the holder due to the application of risk pooling

  the lead time from warehouse to reatialer has decreased

2) Which is not included in a decentralized invemtory system

  Supplier

  Retailer

  Warehouse

3) When demands from markets are negatively correlated

 the higher the coefficient of variation, the greater the benefit obtained from centralized systems

  the higher the coefficient of variation, the greater the benefit obtained from decentralized systems

 the lower the coefficient of variation, the greater the benefit obtained from centralized systems

4) The variability in centralized and decentralized when warehouse directly supply goods to customer are:

 √n and n respectively

 n and √n respectively

 n and 1/√n respectively

5) Increase in holding cost

  increases risk pooling benefits

 decreases risk pooling benefits

 has no effect on risk pooling benefits

6) Compared to decentralized system, at same invenrotry level, risk pooling doesn't get

  better service level

 better revenue

 more holding cost

7) Risk pooling doesn't:

 considers risk of lead time variability from supplier to warehouse

 offsets high demand at one location with low demand at other

 increse sytem responsiveness

8) Drawback of risk pooling is:

 high system responsiveness

 low system responsiveness

 better service level for same inventory

9) "The transportation cost in centralized system

 is more than decentralized system

 is less than decentralized system

 depends on the system conisdered

10) Risk Pooling is more effective when

 high coefficient of variation of demand

 very low holding cost fraction

 small lead time between supplier and retailer