Analyzing capital investments by estimating future cash flows and translating them into equivalent amounts in today's terms is called:

• A.payback analysis
• B.Average return on investment analysis
• C.internal rate of return analysis
• D.discounted cash flow analysis

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Which of the following is an advantage of VMI?

• A.The customer can usually force additional concessions from the VMI supplier
• B.Suppliers can leverage better information to reduce inventory levels.
• C.Lead-times are increased
• D.MRP system operating costs decrease

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Today production control works in a demanding environment shaped by six major challenges. Which one of the following is not of those challenges?

• A.A product life cycle that is getting shorter and shorter
• B.A supply chain that is large and must be manage
• C.None of these
• D.Customer that are never satisfied

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Which tactic would successfully reduce cycle stock?

• A.Increase annual usage of an item
• B.Increase setup costs
• C.Reduce ordering costs
• D.Reduce carrying costs

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The systematic use of techniques that identify a required function, establish a value for that function, and finally provide that function at the lowest overall cost, is known as:

• A.Specification analysis
• B.Functional analysis
• C.Quality analysis
• D.Value analysis

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