Question 1

Given an EOQ model with shortages in which annual demand is 4200 units, Co=$160, Cc=$7 per unit per year, and Cs=$25, what is the optimal stock out level?

Accepted Answer

A)  96.44 
B)  102.36 
C)  108.44 
D)  114.64 
A)  96.44 
B)  102.36 
C)  108.44 
D)  114.64

Question 2

The EOQ is the optimal order quantity that will minimize total carrying costs.

Accepted Answer

A) True 
 B)False

Question 3

If lead time and demand are constant then ________ is zero.

Accepted Answer

The answer of If lead time and demand are constant...

Question 4

Sonny Lawler's law office uses EOQ models to manage their office supplies. They've been ordering ink refills for their printers in quantities of 60 units. The firm estimates carrying cost at 40% of the $10 unit cost and that annual demand is about 240 units per year. The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action be optimal?

Accepted Answer

The answer of Sonny Lawler's law office uses EOQ models...

Question 5

In a(n) ________ inventory system, a constant amount is ordered when inventory declines to a predetermined level.

Accepted Answer

A)  optimal 
B)  economic 
C)  periodic 
D)  continuous 
A)  optimal 
B)  economic 
C)  periodic 
D)  continuous

Question 6

Ruby owns a small café and uses a linen supplier for her tablecloths. Whenever she needs more tablecloths, she calls the supplier. She uses an average of 12 tablecloths a day with a standard deviation of 3 tablecloths. Lead time is a constant 2 days. If Ruby is willing to accept a 5% stockout risk, what is the reorder point, rounded to the nearest tablecloth? Assume demand is normally distributed.

Accepted Answer

A)  28 
B)  31 
C)  34 
D)  42 
A)  28 
B)  31 
C)  34 
D)  42

Question 7

Given an EOQ model with shortages in which annual demand is 4200 units, Co=$160, Cc=$7 per unit per year, and Cs=$25, what is the order quantity?

Accepted Answer

A)  394.72 
B)  495.74 
C)  296.51 
D)  456.34 
A)  394.72 
B)  495.74 
C)  296.51 
D)  456.34

Question 8

Costs involved in a typical inventory model include ________ and ________.

Accepted Answer

carrying c

Question 9

Quantity discounts are always evaluated with carrying cost as a percentage of price.

Accepted Answer

A) True 
 B)False

Question 10

Inventory costs include carrying, ordering, and shortage costs.

Accepted Answer

A) True 
 B)False

Question 11

________ demand items are used internally to produce a final product.

Accepted Answer

The answer of ________ demand items are used internally to...

Question 12

In the basic EOQ model, if annual demand is 50 units, carrying cost is $2 per unit per year, and ordering cost is $15, what is the EOQ?

Accepted Answer

The answer of In the basic EOQ model, if annual...

Question 13

EOQ is used in a(n) ________ inventory system.

Accepted Answer

A)  periodic 
B)  continuous 
C)  optimal 
D)  economic 
A)  periodic 
B)  continuous 
C)  optimal 
D)  economic

Question 14

In the basic EOQ model, if annual demand is 50, carrying cost is $2 per unit per year, and ordering cost is $15, what is the EOQ?

Accepted Answer

A)  27.39 
B)  26.39 
C)  25.39 
D)  24.39 
A)  27.39 
B)  26.39 
C)  25.39 
D)  24.39

Question 15

The service level is the probability that the inventory available during lead time will meet demand.

Accepted Answer

A) True 
 B)False

Question 16

When using the EOQ Formula with noninstantaneous production, as the demand rate (D) increases up to the rate of production, the EOQ

Accepted Answer

A)  increases. 
B)  decreases. 
C)  remains the same. 
D)  cannot be determined. 
A)  increases. 
B)  decreases. 
C)  remains the same. 
D)  cannot be determined.

Question 17

Given an EOQ model with shortages in which annual demand is 4200 units, Co=$160, Cc=$7 per unit per year, and Cs=$25, what is the annual ordering cost?

Accepted Answer

A)  2711.09 
B)  1059.03 
C)  1355.55 
D)  495.74 
A)  2711.09 
B)  1059.03 
C)  1355.55 
D)  495.74

Question 18

Assumptions of the basic EOQ model include constant demand, no shortages, constant lead time, and instantaneous replenishment.

Accepted Answer

A) True 
 B)False

Question 19

-The slope of the line labeled "A" in the diagram is

Accepted Answer

A)  order rate. 
B)  rate of inventory demand. 
C)  production rate. 
D)  production rate minus rate of inventory demand. 
A)  order rate. 
B)  rate of inventory demand. 
C)  production rate. 
D)  production rate minus rate of inventory demand.

Question 20

A product has demand during lead time of 100 units, with a standard deviation of 25 units. What safety stock provides (approximately) a 95% service level?

Accepted Answer

A)  41 
B)  55 
C)  95 
D)  140 
A)  41 
B)  55 
C)  95 
D)  140

Given an EOQ model with shortages in which annual demand is 4200 units, C_o=$160, C_c=$7 per unit per year, and C_s=$25, what is the optimal stock out level?

The EOQ is the optimal order quantity that will minimize total carrying costs.

If lead time and demand are constant then ________ is zero.

In a(n) ________ inventory system, a constant amount is ordered when inventory declines to a predetermined level.

Given an EOQ model with shortages in which annual demand is 4200 units, C_o=$160, C_c=$7 per unit per year, and C_s=$25, what is the order quantity?

Costs involved in a typical inventory model include and .

Quantity discounts are always evaluated with carrying cost as a percentage of price.

Inventory costs include carrying, ordering, and shortage costs.

________ demand items are used internally to produce a final product.

In the basic EOQ model, if annual demand is 50 units, carrying cost is $2 per unit per year, and ordering cost is $15, what is the EOQ?

EOQ is used in a(n) ________ inventory system.

In the basic EOQ model, if annual demand is 50, carrying cost is $2 per unit per year, and ordering cost is $15, what is the EOQ?

The service level is the probability that the inventory available during lead time will meet demand.

When using the EOQ Formula with noninstantaneous production, as the demand rate (D) increases up to the rate of production, the EOQ

Given an EOQ model with shortages in which annual demand is 4200 units, C_o=$160, C_c=$7 per unit per year, and C_s=$25, what is the annual ordering cost?

Assumptions of the basic EOQ model include constant demand, no shortages, constant lead time, and instantaneous replenishment.

-The slope of the line labeled "A" in the diagram is

A product has demand during lead time of 100 units, with a standard deviation of 25 units. What safety stock provides (approximately) a 95% service level?

Management Science

Linear Programming: Model Formulation and Graphical Solution

Linear Programming: Computer Solution and Sensitivity Analysis

Linear Programming: Modeling Examples

Integer Programming

Transportation, Transshipment, and Assignment Problems

Network Flow Models

Project Management

Multicriteria Decision Making

Nonlinear Programming

Probability and Statistics

Decision Analysis

Queuing Analysis

Simulation

Forecasting

the Simplex Solution Method

Transportation and Assignment Solution Methods

Integer Programming: the Branch and Bound Method

Nonlinear Programming: Solution Techniques

Game Theory

Markov Analysis

Filters

Exam 16: Inventory Management

Given an EOQ model with shortages in which annual demand is 4200 units, Co=$160, Cc=$7 per unit per year, and Cs=$25, what is the optimal stock out level?

The EOQ is the optimal order quantity that will minimize total carrying costs.

If lead time and demand are constant then ________ is zero.

In a(n) ________ inventory system, a constant amount is ordered when inventory declines to a predetermined level.

Given an EOQ model with shortages in which annual demand is 4200 units, Co=$160, Cc=$7 per unit per year, and Cs=$25, what is the order quantity?

Costs involved in a typical inventory model include ________ and ________.

Quantity discounts are always evaluated with carrying cost as a percentage of price.

Inventory costs include carrying, ordering, and shortage costs.

________ demand items are used internally to produce a final product.

In the basic EOQ model, if annual demand is 50 units, carrying cost is $2 per unit per year, and ordering cost is $15, what is the EOQ?

EOQ is used in a(n) ________ inventory system.

In the basic EOQ model, if annual demand is 50, carrying cost is $2 per unit per year, and ordering cost is $15, what is the EOQ?

The service level is the probability that the inventory available during lead time will meet demand.

When using the EOQ Formula with noninstantaneous production, as the demand rate (D) increases up to the rate of production, the EOQ

Given an EOQ model with shortages in which annual demand is 4200 units, Co=$160, Cc=$7 per unit per year, and Cs=$25, what is the annual ordering cost?

Assumptions of the basic EOQ model include constant demand, no shortages, constant lead time, and instantaneous replenishment.

-The slope of the line labeled "A" in the diagram is

A product has demand during lead time of 100 units, with a standard deviation of 25 units. What safety stock provides (approximately) a 95% service level?

Management Science

Linear Programming: Model Formulation and Graphical Solution

Linear Programming: Computer Solution and Sensitivity Analysis

Linear Programming: Modeling Examples

Integer Programming

Transportation, Transshipment, and Assignment Problems

Network Flow Models

Project Management

Multicriteria Decision Making

Nonlinear Programming

Probability and Statistics

Decision Analysis

Queuing Analysis

Simulation

Forecasting

the Simplex Solution Method

Transportation and Assignment Solution Methods

Integer Programming: the Branch and Bound Method

Nonlinear Programming: Solution Techniques

Game Theory

Markov Analysis

Filters

Given an EOQ model with shortages in which annual demand is 4200 units, C_o=$160, C_c=$7 per unit per year, and C_s=$25, what is the optimal stock out level?

Given an EOQ model with shortages in which annual demand is 4200 units, C_o=$160, C_c=$7 per unit per year, and C_s=$25, what is the order quantity?

Costs involved in a typical inventory model include and .

Given an EOQ model with shortages in which annual demand is 4200 units, C_o=$160, C_c=$7 per unit per year, and C_s=$25, what is the annual ordering cost?