When a firm places orders in lot sizes that are much larger than the lot sizes in which demand arises,
A) variability of orders is minimized up the supply chain.
B) variability of orders is magnified up the supply chain.
C) suppliers gain better visibility of consumer demand.
D) suppliers gain a more stable demand pattern.
Answer: B
You might also like to view...
Marriott used which of the following management science techniques to help improve profit by $120 million over two years?
A) optimization, decision analysis, and forecasting B) forecasting, queuing theory, and inventory analysis C) queuing theory, optimization, and inventory analysis D) forecasting, simulation, and optimization
Insurance companies invest in the "long-end" of the securities market by purchasing securities with
longer maturities. In which of the following instruments would an insurance company be least likely to invest most of its assets? A) corporate stocks B) mortgages C) corporate bonds D) commercial paper