1. In SPC, when an abnormal instance occurs during the conformance analysis step the process is out of control.

a defect is generated .

there is for sure something wrong during the process.

All of the above.

2. Which of the following is NOT a reason of holding inventory?

Hedge against demand and supply uncertainty

Enjoy economies of scale.

Speculate on price changes.

Smooth production in anticipation of peak demand.

None of the above

3. In an EOQ model, the EOQ is originally determined at 100 units When the demand rate increases 4 times, the new EOQ should be adjusted to

4. Which of the following is NOT a teature of the newsvendor model?

Demand is uncertain when inventory decision is made

Fixed ordering cost is a key cost factor in the inventory decision making

Stock out may occur and there is a penalty for it

Single period inventory planning