Question 1

Inventory position is defined as

Accepted Answer

A) the amount of inventory on hand in excess of expected demand. 
B) the amount of inventory on hand. 
C) the amount of inventory on hand plus the amount of inventory on order. 
D) None of the alternatives is correct. 
A) the amount of inventory on hand in excess of expected demand. 
B) the amount of inventory on hand. 
C) the amount of inventory on hand plus the amount of inventory on order. 
D) None of the alternatives is correct.

Question 2

Periodic review systems require smaller safety stock levels than corresponding continuous review systems.

Accepted Answer

A) True 
 B)False

Question 3

A weekly sports magazine publishes a special edition for the World Series.The sales forecast is for the number of copies to be normally distributed with mean 800,000 copies and standard deviation 60,000 copies.It costs $.35 to print a copy,and the newsstand price is $1.95.Unsold copies will be scrapped.How many copies should be printed?

Accepted Answer

P(demand < Q*)= 1.6/

Question 4

Chez Paul Restaurant orders special Styrofoam "doggy bags" for its customers once a month and lead time is one week.Weekly demand for doggy bags is approximately normally distributed with an average of 120 bags and a standard deviation of 25.Chez Paul wants at most a 3% chance of running out of doggy bags during the replenishment period.If he has 150 bags in stock when he places an order,how many additional bags should he order? What is the safety stock in this case?

Accepted Answer

Order 555

Question 5

Which of the following inventory models does not assume that the inventory position is monitored continuously?

Accepted Answer

A) quantity discounts for the EOQ model 
B) economic production quantity model 
C) periodic review with probabilistic demand model 
D) inventory model with planned shortages 
A) quantity discounts for the EOQ model 
B) economic production quantity model 
C) periodic review with probabilistic demand model 
D) inventory model with planned shortages

Question 6

The cost of overestimating demand is usually harder to determine than the cost of underestimating demand.

Accepted Answer

A) True 
 B)False

Inventory position is defined as

Periodic review systems require smaller safety stock levels than corresponding continuous review systems.

Which of the following inventory models does not assume that the inventory position is monitored continuously?

The cost of overestimating demand is usually harder to determine than the cost of underestimating demand.

Introduction

Introduction to Probability

Probability Distributions

Decision Analysis

Utility and Game Theory

Times Series Analysis and Forecasting

Introduction to Linear Programming

Linear Programming: Sensitivity Analysis and Interpretation of Solution

Linear Programming Applications in Marketing, Finance, and Operations Management

Distribution and Network Models

Integer Linear Programming

Advanced Optimization Applications

Project Scheduling: Pertcpm

Waiting Line Models

Simulation

Markov Processes

Filters

Exam 14: Inventory Models

Inventory position is defined as

Periodic review systems require smaller safety stock levels than corresponding continuous review systems.

Which of the following inventory models does not assume that the inventory position is monitored continuously?

The cost of overestimating demand is usually harder to determine than the cost of underestimating demand.

Introduction

Introduction to Probability

Probability Distributions

Decision Analysis

Utility and Game Theory

Times Series Analysis and Forecasting

Introduction to Linear Programming

Linear Programming: Sensitivity Analysis and Interpretation of Solution

Linear Programming Applications in Marketing, Finance, and Operations Management

Distribution and Network Models

Integer Linear Programming

Advanced Optimization Applications

Project Scheduling: Pertcpm

Waiting Line Models

Simulation

Markov Processes

Filters