1. The economic order quantity (EOQ) for Part X15 is 600 units. The annual ordering cost is $4,800. Which of the following is true?
a. The annual demand for Part X15 is 600 units.
b. The annual carrying cost is $4,800.
c. The average carrying cost per unit is $8.
d. The cost of placing one order is $8.
2. Which of the following best defines electronic data interchange (EDI) transactions?
a. Electronic business information is exchanged between two or more businesses.
b. Customers' funds-related transactions are electronically transmitted and processed.
c. Entered sales data are electronically transmitted via a centralized network to a central processor.
d. Products sold on central Web servers can be accessed by users any time.
3. A dedicated pharmaceutical plant uses the theory of constraints and has three processes: Mixing, Encapsulating, and Packaging. For Mixing, sufficient materials are released to produce 4,000 packages of product per day. Encapsulating has a buffer inventory of 8,000 units (work in process from Mixing). Packaging produces 4,000 units per day. Which of the three processes sets the production rate of 4,000 units per day?
a. The Mixing Department
b. The Encapsulating Department
c. The Packaging Department
d. Cannot be determined