1. Cross-docking refers to which of the following?

A. Avoid placing materials or supplies in storage by processing them as they are received

B. Warehouse docks are designed in the shape of a cross

C. Docks are placed in the warehouse according to the ditection ( north, south, east, or west) from which the truck is arriving

D. The same docks can be used either incoming or outbound shipments

C. The dock is used to unload and then reload the same truck

2. Derive a formula for the following quantities for a production order quantity (POQ) model (a.k.a EPQ model) with planned shortages.

(a) Size of optimal production quantity

(b) Maximum on-hand inventory level

(c) Average on-hand inventory level

(d) Optimal length of each cycle

(e) Fraction of a cycle we produce

(f) Fraction of a cycle we do not produce

(g) Optimal amount of backorder (quantity of backlogged items)

(h) Optimal total cost