Question: 1. For the Economic Order Quantity model, you need safety stock to cover the fluctuations in demand during the periodic cycle time in addition to

1. For the Economic Order Quantity model, you need safety stock to cover the fluctuations in demand during the periodic cycle time in addition to the lead time. (a) True (b) False 2. The time required for a particular job to be completed from the start of the planning period is known as the flow time of that job. (a) True (b) False 3. The function of the economic order quantity (EOQ) model is to determine the optimal order size that minimizes total inventory costs (ordering & carrying costs). (a) True (b) False 4. A stock out occurs when Supply exceeds Demand during the lead time. (a) True (b) False 5. In Resource Planning, the term "Lot-for-Lot" means you order in each period, exactly the quantity demanded for that period. (a) True (b) False

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