1. Consider a company with both a retail outlet division (with over 100 retail stores) and a catalog sales division. Each division stocks the same selection of items and suppose the total sales in each division is about the same. The fact that the catalog division requires less inventory can be most directly explained as a result of:
(a) A newsvendor model
(b) A risk pooling model
(c) A Six Sigma model
(d) A vehicle routing model
(e) A supermodel
2. When planning to build a cross-dock, the most important consideration should be
(a) the building's geographic location relative to suppliers and retailers
(b) the cost of land at the building's location
(c) the design of the area in which pallets are broken down into cases
(d) the design of the order-picking area (e) the quack ratio