Please answer the following questions.

1		In an A-B-C system , A items typically represent about what percent of the items?
			A)	15%
			B)	25%
			C)	50%
			D)	75%
			E)	90%
2		In an A-B-C system, C items typically represent about what percent of the items?
			A)	15%
			B)	30%
			C)	60%
			D)	75%
			E)	90%
3		The quantity discount model is most similar to which one of these models?
			A)	ROP.
			B)	EOQ.
			C)	Fixed interval.
			D)	Single period.
			E)	EPQ
4		Which inventory model does not provide an order quantity??
			A)	EOQ.
			B)	ROP
			C)	Single-period.
			D)	Fixed-interval
			E)	Quantity discount
5		Which one of the following is not a reason for holding inventories?
			A)	To decouple stages of production
			B)	As a hedge against inflation
			C)	To be able to buy in economical lot sizes
			D)	To meet projected demand
			E)	It increases carrying costs.
6		Which one of the following is not a requirement for effective inventory management?
			A)	A system to keep track of inventory on hand
			B)	A classification system for inventory items
			C)	Reasonable estimates of holding and shortage costs
			D)	Using an EOQ model for determining order quantity
			E)	All are requirements
7		Setup costs are similar to which costs?
			A)	Shortage
			B)	Carrying
			C)	Ordering
			D)	Holding
			E)	Overtime
8		Which one of the following would not be included in a list of assumptions of the basic EOQ model?
			A)	Lead time does not vary.
			B)	There are no quantity discounts.
			C)	Demand is spread uniformly throughout the year.
			D)	Annual demand is a known quantity.
			E)	All are assumptions.
9		Which one of the following is a true statement concerning the relationship between holding and ordering costs in the basic EOQ model?
			A)	The two are always equal at the EOQ.
			B)	Holding cost is sometimes equal to ordering cost, and sometimes greater at the EOQ.
			C)	Holding cost is sometimes equal to ordering cost, and sometimes less at the EOQ.
			D)	Holding cost is always greater than ordering cost at the EOQ.
			E)	There is no relationship between the two.
10		In the quantity-discount model, if the total cost curves all reach their minimum levels at the same order quantity, this implies that:
			A)	holding costs are constant per unit.
			B)	holding costs are a percentage of unit price.
			C)	ordering costs are constant.
			D)	ordering and setup costs are equal.
			E)	none of these.
11		The following three questions refer to this information: A bakery makes a limited number of croissants each day for sale in its coffee shop. The croissants cost $.80 each to produce and sell for $2.00 each. Leftover croissants are sold in the bakery the following day for $.75 each, and all of those are sold.
			A)	11. The excess cost is:
			B)	$.05
			C)	$.35
			D)	$.75
			E)	$.80
			F)	$1.20
12		The salvage value is:
			A)	$.05
			B)	$.35
			C)	$.75
			D)	$.80
			E)	$1.20
13		The shortage cost is:
			A)	$.05
			B)	$.35
			C)	$.75
			D)	$.80
			E)	$1.20
14		Demand for a perishable item can be described by a uniform distribution that ranges from 18 units per period to 30 units per period. If shortage and excess costs are equal, the optimal stocking level would be:
			A)	18
			B)	24
			C)	30
			D)	36
			E)	48