Question 1

Using the EOQ model,if an item's holding cost increases,it will be ordered more frequently

Accepted Answer

A) True 
 B)False  True

Question 2

In the basic EOQ model,annual holding cost is one-half of the total annual cost

Accepted Answer

A) True 
 B)False  True

Question 3

Using the basic EOQ model,the higher an item's holding costs,the more frequently it will be ordered

Accepted Answer

A) True 
 B)False  True

Question 4

Inspection of goods for quality and quantity upon arrival is part of setup costs

Accepted Answer

A) True 
 B)False

Question 5

The JIT philosophy is one of avoiding waste wherever it might occur in the production process

Accepted Answer

A) True 
 B)False

Question 6

If the manager was to order 16 cases of beer at a time,what would be the length of an order cycle?

Accepted Answer

A) 0 25 days 
B) 3 days 
C) 1 day 
D) 4 days 
E) 20 days 
A) 0 25 days 
B) 3 days 
C) 1 day 
D) 4 days 
E) 20 days

Question 7

In the basic EOQ model,if D=60 per month,K=$12,and h=$10 per unit per month,EOQ is:

Accepted Answer

A) 10 
B) 12 
C) 24 
D) 72 
E) 144 
A) 10 
B) 12 
C) 24 
D) 72 
E) 144

Question 8

MRP is a system for determining optimal order quantities for dependent-demand products

Accepted Answer

A) True 
 B)False

Question 9

Planned shortages are permitted in the EOQ model with gradual replenishment

Accepted Answer

A) True 
 B)False

Question 10

Which of the following products would be most likely to have dependent demand?

Accepted Answer

A) Refrigerators 
B) Car engines 
C) TVs 
D) Brownies 
E) None of the above 
A) Refrigerators 
B) Car engines 
C) TVs 
D) Brownies 
E) None of the above

Question 11

What is the EOQ for beer?

Accepted Answer

A) 4 cases 
B) 8 cases 
C) 10 cases 
D) 20 cases 
E) 80 cases 
A) 4 cases 
B) 8 cases 
C) 10 cases 
D) 20 cases 
E) 80 cases

Question 12

The goal of the basic EOQ model is to:

Accepted Answer

A) minimize order size 
B) minimize order cost 
C) minimize holding cost 
D) minimize the sum of purchasing and setup costs 
E) minimize the sum of setup and holding costs 
A) minimize order size 
B) minimize order cost 
C) minimize holding cost 
D) minimize the sum of purchasing and setup costs 
E) minimize the sum of setup and holding costs

Question 13

If the cost of holding inventory is high relative to shortage costs,then allowing shortages may be a good policy

Accepted Answer

A) True 
 B)False

Question 14

If she was to order 80 pounds of pepperoni at a time,what would be the length of an order cycle?

Accepted Answer

A) 0 days 
B) 0 25 days 
C) 3 day 
D) 4 days 
E) 5 days 
A) 0 days 
B) 0 25 days 
C) 3 day 
D) 4 days 
E) 5 days

Question 15

Administrative costs provide a strong incentive to place larger orders

Accepted Answer

A) True 
 B)False

Question 16

In the basic EOQ model,if annual demand doubles what is the effect on the EOQ?

Accepted Answer

A) It doubles 
B) It is four times its previous amount 
C) It is half its previous amount 
D) It is about 70% of its previous amount 
E) It increases by about 40% 
A) It doubles 
B) It is four times its previous amount 
C) It is half its previous amount 
D) It is about 70% of its previous amount 
E) It increases by about 40%

Question 17

JIT refers to a production system in which goods arrive for processing just as the preceding batch is completed

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not true for the EOQ model with gradual replenishment?

Accepted Answer

A) Demand is constant 
B) Production rate exceeds usage rate 
C) Run size exceeds maximum inventory 
D) There are no setup costs 
E) Average inventory is one-half maximum inventory 
A) Demand is constant 
B) Production rate exceeds usage rate 
C) Run size exceeds maximum inventory 
D) There are no setup costs 
E) Average inventory is one-half maximum inventory

Question 19

If the manager was to order 16 cases of beer at a time,what would be the average inventory level?

Accepted Answer

A) 4 cases 
B) 8 cases 
C) 12 cases 
D) 16 cases 
E) 20 cases 
A) 4 cases 
B) 8 cases 
C) 12 cases 
D) 16 cases 
E) 20 cases

Question 20

Which of the following is not an assumption of the EOQ model with planned shortages?

Accepted Answer

A) Demand is constant 
B) Each order is received all at once 
C) Orders are received just when desired 
D) When a shortage occurs,customers are lost 
E) All are assumptions 
A) Demand is constant 
B) Each order is received all at once 
C) Orders are received just when desired 
D) When a shortage occurs,customers are lost 
E) All are assumptions

Using the EOQ model,if an item's holding cost increases,it will be ordered more frequently

In the basic EOQ model,annual holding cost is one-half of the total annual cost

Using the basic EOQ model,the higher an item's holding costs,the more frequently it will be ordered

Inspection of goods for quality and quantity upon arrival is part of setup costs

The JIT philosophy is one of avoiding waste wherever it might occur in the production process

If the manager was to order 16 cases of beer at a time,what would be the length of an order cycle?

In the basic EOQ model,if D=60 per month,K=$12,and h=$10 per unit per month,EOQ is:

MRP is a system for determining optimal order quantities for dependent-demand products

Planned shortages are permitted in the EOQ model with gradual replenishment

Which of the following products would be most likely to have dependent demand?

What is the EOQ for beer?

The goal of the basic EOQ model is to:

If the cost of holding inventory is high relative to shortage costs,then allowing shortages may be a good policy

If she was to order 80 pounds of pepperoni at a time,what would be the length of an order cycle?

Administrative costs provide a strong incentive to place larger orders

In the basic EOQ model,if annual demand doubles what is the effect on the EOQ?

JIT refers to a production system in which goods arrive for processing just as the preceding batch is completed

Which of the following is not true for the EOQ model with gradual replenishment?

If the manager was to order 16 cases of beer at a time,what would be the average inventory level?

Which of the following is not an assumption of the EOQ model with planned shortages?

Introduction

Linear programming: Basic Concepts

Linear programming: Formulation and applications

Theart of modeling with spread sheets

What-If Analysis for linear programming

Network optimization problems

Using binary integer programming to deal withy es-Or-No decisions

Non linear programming

Decision Analysis

Forecasting

Queuing models

Computer simulation: Basic Concepts

Computer simulation with risks olver platform

Solution concepts for linear programming

Transportation and assignment problems

Pert CPM models for project management

Goal programming

Inventory management with uncertain demand

Computer simulation with crystal ball

Filters

Exam 18: Inventory management with known demand

Using the EOQ model,if an item's holding cost increases,it will be ordered more frequently

In the basic EOQ model,annual holding cost is one-half of the total annual cost

Using the basic EOQ model,the higher an item's holding costs,the more frequently it will be ordered

Inspection of goods for quality and quantity upon arrival is part of setup costs

The JIT philosophy is one of avoiding waste wherever it might occur in the production process

If the manager was to order 16 cases of beer at a time,what would be the length of an order cycle?

In the basic EOQ model,if D=60 per month,K=$12,and h=$10 per unit per month,EOQ is:

MRP is a system for determining optimal order quantities for dependent-demand products

Planned shortages are permitted in the EOQ model with gradual replenishment

Which of the following products would be most likely to have dependent demand?

What is the EOQ for beer?

The goal of the basic EOQ model is to:

If the cost of holding inventory is high relative to shortage costs,then allowing shortages may be a good policy

If she was to order 80 pounds of pepperoni at a time,what would be the length of an order cycle?

Administrative costs provide a strong incentive to place larger orders

In the basic EOQ model,if annual demand doubles what is the effect on the EOQ?

JIT refers to a production system in which goods arrive for processing just as the preceding batch is completed

Which of the following is not true for the EOQ model with gradual replenishment?

If the manager was to order 16 cases of beer at a time,what would be the average inventory level?

Which of the following is not an assumption of the EOQ model with planned shortages?

Introduction

Linear programming: Basic Concepts

Linear programming: Formulation and applications

Theart of modeling with spread sheets

What-If Analysis for linear programming

Network optimization problems

Using binary integer programming to deal withy es-Or-No decisions

Non linear programming

Decision Analysis

Forecasting

Queuing models

Computer simulation: Basic Concepts

Computer simulation with risks olver platform

Solution concepts for linear programming

Transportation and assignment problems

Pert CPM models for project management

Goal programming

Inventory management with uncertain demand

Computer simulation with crystal ball

Filters