SCM 303 Swink Chapter 7 Questions and Correct Answers the Latest Update
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Module
SCM 303
Institution
SCM 303
T or F: Ordering cost only consists of the shipping cost from supplier to
customer.
False
Ordering cost is which type of cost?
Variable
Overhead
Fixed
Which of the following would be considered part of Ordering Cost? (choose all
that apply)
-Minimum shipping charge
-Postage to mail t...
-Cost of the office building housing your employees.
✓ -Minimum shipping charge
✓
✓ -Renting a truck to haul the order (and only this order, no other business is used for
this truck's one time rental)
T or F: The standard deviation of demand during lead time is the same whether
or not lead time is variable.
✓ False
Finding average demand during lead time involves doing which of the following?
Summing the square root of average demand per day and summing
Integrating average daily demand from zero to four
Summing the daily average demand per day
Squaring average demand per day and summing
✓ Summing the daily average demand per day
Since standard deviations don't sum, we have to sum which thing instead?
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