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which of the following assumptions is TRUE? A. The demand is known exactly and is constant over time. B. The lead time of the inventory is never zero. C. All costs are known but they may vary. D. Planned shortages are allowed

which of the following assumptions is TRUE? A. The demand is known exactly and is constant over time. B. The lead time of the inventory is never zero. C. All costs are known but they may vary. D. Planned shortages are allowed

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1. For the basic Economic Order Quantity (EOQ), 4. All the following are holding cost EXCEPT: which of the following assumptions is TRUE? A. obsolescence cost A. The demand is known exactly and is B. overheads constant over time. C. handling B. The lead time of the inventory is never D. depreciation zero. C. All costs are known but they may vary. 5. In inventory control, the time which elapse D. Planned shortages are allowed between placing an order and the arrival of the inventory is called 2. To make inventory decisions, the purpose of the A. cycle time basic EOQ model is to minimize: B. lead time A. customer dissatisfaction C. mean time B. carrying costs D. variance time C. ordering costs D. the sum of carrying costs and ordering costs 6. The basic difference(s) between the simple EOQ model and the production run model is the: 3. Renewables Auto Dealer sells 3600 electric A. holding cost per unit per year and the motors each year. The cost of these are $200 ordering cost per order each and demand is constant throughout the B. difference in the inventory delivery year. The cost of placing an order is $40, while assumption the holding cost is $20 per unit per year. There C. difference in the assumption about demand are 360 working days per year and the lead-time D. difference in the assumptions concerning is 5 days. If Renewables order size is 200 units, stock-out and shortages what would the total ordering cost be for the year? 7. The purpose of the economic reorder point is to A. $200 tell you: В. $720 A. how much to order C. $2000 B. when to order D. $2720 C. when your stock is at a certain level D. the value of the inventory left 2
Transcribed Image Text:1. For the basic Economic Order Quantity (EOQ), 4. All the following are holding cost EXCEPT: which of the following assumptions is TRUE? A. obsolescence cost A. The demand is known exactly and is B. overheads constant over time. C. handling B. The lead time of the inventory is never D. depreciation zero. C. All costs are known but they may vary. 5. In inventory control, the time which elapse D. Planned shortages are allowed between placing an order and the arrival of the inventory is called 2. To make inventory decisions, the purpose of the A. cycle time basic EOQ model is to minimize: B. lead time A. customer dissatisfaction C. mean time B. carrying costs D. variance time C. ordering costs D. the sum of carrying costs and ordering costs 6. The basic difference(s) between the simple EOQ model and the production run model is the: 3. Renewables Auto Dealer sells 3600 electric A. holding cost per unit per year and the motors each year. The cost of these are $200 ordering cost per order each and demand is constant throughout the B. difference in the inventory delivery year. The cost of placing an order is $40, while assumption the holding cost is $20 per unit per year. There C. difference in the assumption about demand are 360 working days per year and the lead-time D. difference in the assumptions concerning is 5 days. If Renewables order size is 200 units, stock-out and shortages what would the total ordering cost be for the year? 7. The purpose of the economic reorder point is to A. $200 tell you: В. $720 A. how much to order C. $2000 B. when to order D. $2720 C. when your stock is at a certain level D. the value of the inventory left 2
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