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Question;60. Which of the following is not one of the;assumptions of the basic EOQ model?;A. Annual demand requirements are known and constant.;B. Lead time does not vary.;C. Each order is received in a single delivery.;D. Quantity discounts are available.;E. All of the above are necessary assumptions.;61. Which of the following interactions with vendors;would potentially lead to inventory reductions?;A. reduce lead times;B. increase safety stock;C. less frequent purchases;D. larger batch quantities;E. longer order intervals;62. A non-linear cost related to order size is the cost;of;A. interest;B. insurance;C. taxes;D. receivingE. space;63. 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?rst bin;D. optimum stocking level;E. safety stock;64. When carrying costs are stated as a percentage of;unit price, the minimum points on the total cost curves;A. Line up;B. Equal zero;C. Do not line up;D. Cannot be calculated;E. Depend on the percentage assigned;65. Dairy items, fresh fruit and newspapers are items;that;A. do not require safety stocks;B. cannot be ordered in large quantities;C. are subject to deterioration and spoilage;D. require that prices be lowered every two days;E. have minimal holding costs66. Which of the following is least likely to be;included in order costs?;A. processing vendor invoices for payment;B. moving delivered goods to temporary storage;C. inspecting incoming goods for quantity;D. taking an inventory to determine how much is needed;E. temporary storage of delivered goods;67. In an A-B-C system, the typical percentage of the;number of items in inventory for A items is about;A. 10;B. 30;C. 50;D. 70;E. 90;68. In the A-B-C classi?cation system, items which;account for?fteen percent of the total dollar-volume for a;majority of the inventory items would be classi?ed as;A. A items;B. B items;C. C items;D. A items plus B items;E. B items plus C items;69. In the A-B-C classi?cation system, items which;account for sixty percent of the total dollar-volume for few;inventory items would be classi?ed as;A. A items;B. B items;C. C items;D. A items plus B items;E. B items plus C items;70. The purpose of "cycle counting" is;to;A. count all the items in inventory;B. count bicycles and motorcycles in inventory;C. reduce discrepancies between inventory records and;actual;D. reduce theft;E. count 10% of the items each month;71. The EOQ model is most relevant for which one of the;following?;A. ordering items with dependent demand;B. determination of safety stock;C. ordering perishable items;D. determining?xed interval order quantities;E. determining?xed order quantities72. Which is not a true assumption in the EOQ;model?;A. Production rate is constant;B. Lead time doesn't vary;C. No more than 3 items are involved;D. Usage rate is constant;E. No quantity discounts73. In a supermarket, a vendor's restocking the shelves;every Monday morning is an example of;A. safety stock replenishment;B. economic order quantities;C. reorder points;D.?xed order interval;E. blanket ordering;74. A cycle count program will usually require that ?A;items be counted;A. daily.;B. once a week.;C. monthly.;D. quarterly.;E. more frequently than annually.;75. A risk avoider would want ______ safety;stock.;A. Less;B. More;C. The same;D. Zero;E. 50%;76. 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.;77. In the basic EOQ model, if lead time increases from;?ve to 10 days, the EOQ will;A. double;B. increase, but not double;C. decrease by a factor of two;D. remain the same;E. none of the above;78. In the basic EOQ model, an annual demand of 40;units, an ordering cost of $5, and a holding cost of $1 per;unit per year will result in an EOQ of;A. 20;B. square root of 200;C. 200;D. 400;E. none of these;79. In the basic EOQ model, if D = 60 per month, S =;$12, and H = $10 per unit per month, EOQ is;A. 10;B. 12;C. 24;D. 72;E. 144;80. In the basic EOQ model, if annual demand is 50;carrying cost is $2, and ordering cost is $15, EOQ is;approximately;A. 11;B. 20;C. 24;D. 28;E. 375;81. Which of the following is not true for;Economic Production Quantity model?;A. Usage rate is constant.;B. Production rate exceeds usage rate.;C. Run size exceeds maximum inventory.;D. There are no ordering or setup costs.;E. Average inventory is one-half maximum inventory.;82. Given the same demand, setup/ordering costs, and;carrying costs, the EOQ calculated using incremental;replenishment will be ____________ if instantaneous;replenishment was assumed;A. greater than the EOQ;B. equal to the EOQ;C. smaller than the EOQ;D. greater than or equal to the EOQ;E. smaller than or equal to the EOQ;83. The introduction of quantity discounts will cause;the optimum order quantity to be;A. smaller;B. unchanged;C. greater;D. smaller or unchanged;E. unchanged or greater;84. A?ll rate is the percentage of _____?lled by;stock on hand.;A. Shipments;B. Demand;C. Inventory;D. Safety stock;E. Lead time;85. In the quantity discount model, with carrying cost;stated as a percentage of unit purchase price, in order for the;EOQ of the lowest curve to be optimum, it must;A. have the lowest total cost;B. be in a feasible range;C. be to the left of the price break quantity for that;price;D. have the largest quantity compared to other EOQ's;E. none of the above;86. Which one of the following is not generally a;determinant of the reorder point?;A. rate of demand;B. length of lead time;C. lead time variability;D. stockout risk;E. purchase cost;87. If no variations in demand or lead time;exist, the ROP will equal;A. the EOQ;B. expected usage during lead time;C. safety stock;D. the service level;E. the EOQ plus safety stock;88. If average demand for an inventory item is 200;units per day, lead time is three days, and safety stock is 100;units, the reorder point is;A. 100 units;B. 200 units;C. 300 units;D. 600 units;E. 700 units;89. Which one of the following is implied by a;lead time" service level of 95 percent?;A. Approximately 95 percent of demand during lead time;will be satis?ed.;B. Approximately 95 percent of inventory will be used;during lead time.;C. The probability is 95 percent that demand during;lead time will exactly equal the amount on hand at the;beginning of lead time.;D. The probability is 95 percent that demand during;lead time will not exceed the amount on hand at the beginning;of lead time.;E. none of the above;90. Which one of the following is implied by an;annual" service level of 95 percent?;A. Approximately 95 percent of demand during lead time;will be satis?ed.;B. The probability is 95 percent that demand will;exceed supply during lead time.;C. The probability is 95 percent that demand will equal;supply during lead time.;D. The probability is 95 percent that demand will not;exceed supply during lead time.;E. None of the above.

 

Paper#56807 | Written in 18-Jul-2015

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