Essay on Operating Management

2081 WordsJan 21, 20139 Pages
1. Carrying costs include the following items, except: a. labor b. record keeping c. rent *d. all the above 2. Which of the following is not a cost associated with carrying inventory? *a. price discounts b. carrying costs c. ordering costs d. shortage costs 3. The level of inventory at which a new order should be placed is known as the a. lead time b. replenishment quantity *c. reorder point d. service level 4. A restaurant currently uses 62,500 boxes of napkins each year at a constant daily rate. If the cost to order napkins is $200.00 per order and the annual carrying cost for one box of napkins is $1.00, then the optimal order quantity (EOQ) for napkins would be a. 62,500 boxes b. 10,000 boxes…show more content…
Assume the following regarding a Sales and Operations plan. Demand for the four quarters = 30,000; 40,000; 50,000 and 40,000 units respectively Cost of production / unit = $2 Cost of carrying / unit / quarter = $1 Production capacity = 1000 units/quarter/employee Beginning workforce at the start of the year = 10 Cost of hiring a worker = $200 Cost of laying off a worker = $400 How many workers are hired in the 2nd quarter if a chase plan is
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