 |
1 | |
All reorder-point models assume constant lead.time. |
| | A) | True |
| | B) | False |
|
|
2 | |
If the production rate in an economic production lot size model is very much larger than the consumption rate, the results are practically the same for economic production lot size and EOQ. |
| | A) | True |
| | B) | False |
|
|
3 | |
With the quantity-discount model, an order level might not be at a minimum point of a total cost curve. |
| | A) | True |
| | B) | False |
|
|
4 | |
Moving goods to temporary storage is an example of a holding cost. |
| | A) | True |
| | B) | False |
|
|
5 | |
Setup cost is analogous to ordering cost in EOQ models. |
| | A) | True |
| | B) | False |
|
|
6 | |
In a reorder model the daily demand rate is normally distributed with a mean of 50 units and a standard deviation of 5 units. The lead time is 9 days, Q = 500 units, and the leadtime service level (LTSL) is 90%. What are approximate values for SS and ROP? |
| | A) | 19, 69 |
| | B) | 4, 69 |
| | C) | 6, 469 |
| | D) | 19, 469 |
|
|
7 | |
If both the lead time and daily demand are constant, the ROP is equal to: |
| | A) | Safety stock |
| | B) | Expected demand minus safety stock. |
| | C) | Expected demand plus safety stock. |
| | D) | Daily demand times lead time. |
| | E) | None of these. |
|
|
8 | |
Which inventory model does not provide an order quantity? |
| | A) | EOQ. |
| | B) | ROP |
| | C) | Single-period. |
| | D) | Fixed-interval |
| | E) | Quantity discount |
|
|
9 | |
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 |
|
|
10 | |
Which one of the following would not appear on a list of relevant costs of inventory? |
| | A) | Shortage |
| | B) | Carrying |
| | C) | Order |
| | D) | Holding |
| | E) | Overtime |
|
|
11 | |
What items do students typically buy on an ROP basis? |
| | A) | books |
| | B) | wedding gifts |
| | C) | gasoline for car |
| | D) | computer |
| | E) | bran muffins |
|
|
12 | |
In a two-bin inventory system, the amount contained in the second bin is equal to the: |
| | A) | ROP |
| | B) | EOQ |
| | C) | amount in the first bin |
| | D) | optimum stocking level |
| | E) | safety stock |
|
|
13 | |
In the A-B-C classification system, items which account for fifteen percent of the total dollar-volume for a majority of the inventory items would be classified as: |
| | A) | A items |
| | B) | B items |
| | C) | C items |
| | D) | either A items or B items |
| | E) | either B items or C items |
|
|
14 | |
In the basic EOQ model, if annual demand doubles, the effect on the EOQ is: |
| | A) | It doubles. |
| | B) | It is four times its previous amount. |
| | C) | It is half its previous amount. |
| | D) | It is about 70 percent of its previous amount. |
| | E) | It increases by about 40 percent. |
|