1) Inventory turnover can be calculated by ____.

a. dividing the cost of goods sold by average inventory

b. dividing average inventory by the costs of goods sold

c. multiplying average inventory by 1.5

d. adding beginning and ending inventory and then dividing by two

e. none of the above

2) Which of the following statements about the lean approach and JIT is false?

a. JIT tends to focus on product movement from manufacturer to retailer

b. organizations should give careful consideration before adopting a lean philosophy

c. the lean approach views inventory as waste

d. trucking is an important mode of transportation in JIT systems

e. all of the above are true

3) Which of the following statements is false?

a. the accessibility of highway transportation often ranks as one of the most important criteria in facility location

b. transportation considerations are a key aspect of facility location decisions

c. a poor facility location can increase transportation costs as well as negatively impact customer service

d. a centralized facility location can maximize a facility’s service area

e. all of the above are true

4) Labor wage rates appear to be a key locational determinant as supply chains become more global in nature.

True

False