Exam 19: Inventory Control Models

In the EPQ model,if the annual demand in units is D,the cost per setup is K,and the optimal or economic production quantity is Q,then the total annual setup costs are given by ______.

The setup cost to make carpets is $20 per setup.The holding cost is $1.75 per yard per year,and the annual demand is 12,000 yards of carpet per year.The manufacturing facility operates 300 days,and 120 yards of the carpet are produced per day.What is the total annual setup cost under the economic production quantity policy?

In the EOQ model,if no quantity discounts are allowed,then ______.

In the EPQ model,the maximum inventory level is given by ______.

If both demand and lead time are constant,then to determine the inventory level at which to reorder,we need to know ______.

In the economic order quantity model,ordering at the economic order quantity level implies that ______.

Kraus Department Store,located in Chicago,sells 1,700 coffeemakers per year.The purchase price of each coffeemaker is $70.The ordering cost is $90 per order.The holding cost is 30% of the unit purchase price.In this example,the holding costs are ______.

If we are ordering materials from an outside vendor,then the total inventory-related cost on an annual basis is given by the sum of ______.

If demand during lead time is normally distributed,and if the standard deviation of demand during the lead time is 50 units,then to provide an additional 34% service level,the number of additional units that should be held in inventory is ______.

If the production schedule calls for assembly of 500 motorcycles,then the 1,000 wheels and 1,000 tires that are required to produce the 500 motorcycles are ______.

According to the EPQ model,if the production run size is Q and the production rate is p,then the number days of production run is given by ______.

Independent demand items are ______.

One of the assumptions of the EOQ (Economic Production Quantity)model is ______.

A local distributor for a Belgian chocolate manufacturer expects to sell 12,000 cases of chocolate truffles next year.The annual holding costs for the truffles are $16 per case per year.The ordering cost is $60 per order.The distributor operates 320 days a year.In this example,______.

The economic order quantity (EOQ)model assumes that ______.

The EOQ formula considers the ______.

In the EOQ model,if quantity discounts are offered,then ______.

Holding costs are a linear function of quantity ordered.This means that ______.

Which of the following statements is true with regard to the order quantity?

The optimal order quantity is an amount that minimizes ______.