1. Consider the basic EOQ model (no uncertainty). Optimal order quantity (Q ) is 1,800 units. What is the average inventory level (I )?

a. 900 units

b. 1,800 units

c. 600 units

d. 1,000 units

e. 3,600 units

2. Consider the basic EOQ model (no uncertainty). Annual holding cost (AHC) is $2,400. Find annual ordering cost (AOC).

a. Cannot be answered because there is missing information

b. AOC=$0, since there is no uncertainty

c. $1,200, since AOC=AHC/2 at economic order quantity.

d. $4,800, since AOC=2 x AHC at economic order quantity

e. AOC=$2,400, since AHC=AOC at the economic order quantity

3. Consider the basic EOQ model (no uncertainty). Optimal number of orders per year (N ) is 4. Find optimal cycle time (time between orders), T , in weeks.

a. 13 weeks

b. Cannot be answered because there is missing information

c. 4 weeks

d. 8 weeks

e. 0.25 weeks

4. An online retail store sells robotic vacuum cleaners. Average demand per day (d ) is 120 units, with a std. dev. of ( d) 40 units. Lead time (L T) is 9 days (constant). Find demand during lead time (D D L), safety stock (S S) and reorder point (R O P) for z = 3.

a. DDL=900 units, SS=1,440 units, ROP=360 units

b. Cannot be answered because there is missing information

c. DDL=500 units, SS=350 units, ROP=850 units

d. DDL=1,440 units, SS=360 units, ROP=1,080 units

e. DDL=1,080 units, SS=360 units, ROP=1,440 units