Question 1

Which of the following is NOT true regarding period order quantity method (POQ) of lot sizing?

Accepted Answer

A)  The order quantity is constant. 
B)  The time interval of inventory coverage is constant. 
C)  POQ is derived directly from the EOQ. 
D)  POQ is better suited to lumpy demand than EOQ. 
E)  POQ and EOQ will try to order the same number of times per year. 
A)  The order quantity is constant. 
B)  The time interval of inventory coverage is constant. 
C)  POQ is derived directly from the EOQ. 
D)  POQ is better suited to lumpy demand than EOQ. 
E)  POQ and EOQ will try to order the same number of times per year.

Question 2

K the constant used for lot sizing is calculated as the:

Accepted Answer

A)  Order point minus safety stock. 
B)  Sum of the square roots of demand divided by the number of orders per year. 
C)  Standard deviation of the demand divided by the square root of demand. 
D)  Annual demand divided by the order quantity. 
E)  The reciprocal of order quantity times the economic order quantity. 
A)  Order point minus safety stock. 
B)  Sum of the square roots of demand divided by the number of orders per year. 
C)  Standard deviation of the demand divided by the square root of demand. 
D)  Annual demand divided by the order quantity. 
E)  The reciprocal of order quantity times the economic order quantity.

Question 3

Quantity discounts cause companies to:

Accepted Answer

A)  Order sooner. 
B)  Order less at a time. 
C)  Increase their inventory. 
D)  Increase ordering costs. 
E)  Always save money 
A)  Order sooner. 
B)  Order less at a time. 
C)  Increase their inventory. 
D)  Increase ordering costs. 
E)  Always save money

Question 4

Which of the following statements is best?
I. The EOQ should be used with lumpy demand.
II. Transportation cost should be included in the cost of ordering.
III. Anticipation inventory should be built based on capacity and future demand.

Accepted Answer

A)  I and II only are true 
B)  I and III only are true 
C)  II and III only are true 
D)  all the above are true 
E)  none of the above are true 
A)  I and II only are true 
B)  I and III only are true 
C)  II and III only are true 
D)  all the above are true 
E)  none of the above are true

Question 5

Which of the following are NOT assumptions on which the economic order quantity (EOQ) is based?

Accepted Answer

A)  demand is relatively constant and known 
B)  the item is produced continuously 
C)  order preparation costs, inventory carrying costs and lead times are constant and known 
D)  replacement occurs all at once 
E)  all of the above are true assumptions 
A)  demand is relatively constant and known 
B)  the item is produced continuously 
C)  order preparation costs, inventory carrying costs and lead times are constant and known 
D)  replacement occurs all at once 
E)  all of the above are true assumptions

Which of the following is NOT true regarding period order quantity method (POQ) of lot sizing?

K the constant used for lot sizing is calculated as the:

Quantity discounts cause companies to:

Which of the following statements is best? I. The EOQ should be used with lumpy demand. II. Transportation cost should be included in the cost of ordering. III. Anticipation inventory should be built based on capacity and future demand.

Which of the following are NOT assumptions on which the economic order quantity (EOQ) is based?

Introduction to Materials Management

Production Planning System

Master Scheduling

Material Requirements Planning

Capacity Management

Production Activity Control

Purchasing

Forecasting

Inventory Fundamentals

Independent Demand Ordering Systems

Physical Inventory and Warehouse Management

Physical Distribution

Products and Processes

Lean Production

Total Quality Management

Filters

Exam 10: Order Quantities

Which of the following is NOT true regarding period order quantity method (POQ) of lot sizing?

K the constant used for lot sizing is calculated as the:

Quantity discounts cause companies to:

Which of the following statements is best? I. The EOQ should be used with lumpy demand. II. Transportation cost should be included in the cost of ordering. III. Anticipation inventory should be built based on capacity and future demand.

Which of the following are NOT assumptions on which the economic order quantity (EOQ) is based?

Introduction to Materials Management

Production Planning System

Master Scheduling

Material Requirements Planning

Capacity Management

Production Activity Control

Purchasing

Forecasting

Inventory Fundamentals

Independent Demand Ordering Systems

Physical Inventory and Warehouse Management

Physical Distribution

Products and Processes

Lean Production

Total Quality Management

Filters