Question 1

If average lead time went up from 10 to 15 days, what will happen to EOQ?

Accepted Answer

A) Increase of 200 units 
B) Decrease of 200 units. 
C) No change in EOQ 
D) Increase of 100 units 
A) Increase of 200 units 
B) Decrease of 200 units. 
C) No change in EOQ 
D) Increase of 100 units

Question 2

Suppose management decides it wants to offer a 95% service level. That is, Cooper Company is willing to experience a stock-out probability of 5% during the order cycle. How much safety stock should be carried?

Accepted Answer

A) 33 units 
B) 35 units 
C) 46 units 
D) 25 units 
A) 33 units 
B) 35 units 
C) 46 units 
D) 25 units

Question 3

is the average inventory? (round up to the nearest whole number)

Accepted Answer

A) 1200 units 
B) 283 units 
C) 250 units 
D) 275 units 
A) 1200 units 
B) 283 units 
C) 250 units 
D) 275 units

If average lead time went up from 10 to 15 days, what will happen to EOQ?

Suppose management decides it wants to offer a 95% service level. That is, Cooper Company is willing to experience a stock-out probability of 5% during the order cycle. How much safety stock should be carried?

is the average inventory? (round up to the nearest whole number)

21st-Century Supply Chains

Logistics

Customer Relationship Management

Procurement

Manufacturing

Integrated Operations Planning

Transportation

Warehousing

Packaging and Handling

Global Supply Chains

Network Design

Operation Analysis

Collaboration

Performance Measurement

Risk and Sustainability

Filters

Exam 7: Inventory

If average lead time went up from 10 to 15 days, what will happen to EOQ?

Suppose management decides it wants to offer a 95% service level. That is, Cooper Company is willing to experience a stock-out probability of 5% during the order cycle. How much safety stock should be carried?

is the average inventory? (round up to the nearest whole number)

21st-Century Supply Chains

Logistics

Customer Relationship Management

Procurement

Manufacturing

Integrated Operations Planning

Transportation

Warehousing

Packaging and Handling

Global Supply Chains

Network Design

Operation Analysis

Collaboration

Performance Measurement

Risk and Sustainability

Filters