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A manufacturing firm's facility operates a level production strategy. The initial demand plan is as follows:MonthJanFebMarAprMayJunJulAugUnit Sales12,00026,00026,00021,00020,00020,00015,00020,000Production20,00020,00020,00020,00020,00020,00020,00020,000The supply management department learns that one of its retailers is planning a promotional event on August1st that it expects will require an additional 19,000 units. There are 5,000 units in stock for the beginning ofJanuary, and maximum inventory holding is 15,000 units. How many units per month should production increase in order to meet the requirements of its retailer andminimize overall inventory levels?

A supply manager for JKL, Inc. is negotiating a contract with a supplier of a component. The component will be used in a new product JKL Is manufacturing and plans to bring to market early next year. Which of the following will be the MOST important provision for the supply manager to negotiate for? 

BCD Manufacturing's products have very high velocity. Accordingly, the firm is redesigning its warehouse toaccommodate additionalimplement a system thatwill allow its products to be stored in flexible locations, due to the high demand of different SKUs. Thisstrategy should also allow the orgfeization to improve warehouse efficiency. In this situation, which of thefollowing types of storage strategies should BCD employ?

A graph of a firm’s inventory replenishment system reveals the followingWhich of the following is TRUE’ 

DEF, Inc. is in the ramp-up phase of a unique medical device. The device has a two-year life expectancy. The sales forecast for the ramp-up period is as follows MonthJulAugSepOctNovDecJanFebUnit Sales1001502006001,4002,2004,00010,000Demand after February is expected to remain at 10,000 units per month for several months, then decreasegradually. The units are small, and thus maintaining an inventory of up to 10,000 units is possible.There are only three suppliers capable of providing the specialized component critical to this product. Theproduction capacities of these suppliers are as follows:•Supplier X has a capacity of 500 units per month at a cost of S20 per unit, representing 80% of its totalbusiness•Supplier Y has a capacity of 2,000 units per month at a cost of S2O.5O per unit, representing 50% of its totalbusiness•Supplier Z has a capacity of 20,000 units per month at a cost of $20.70 per unit, representing 10% of its totalbusinessTwo of these companies—Supplier X and Supplier Y—are minority businesses.Given this situation, DEF should contract with