Question: 1. Smaller order quantities would result in _______ average inventory. a. higher b. lower c. no change in 2. Suppose that EOQ=187 units per order,

1. Smaller order quantities would result in _______ average inventory.

a. higher b. lower c. no change in

2. Suppose that EOQ=187 units per order, ROP=40 units, daily demand = 20 units. We should place an order when the inventory on-hand drops to ______ units.

a. 187 b. 40 c. 20 d. 800 e. 60

3. The safety stock of an item tends to be _______ if the items daily demand is quite uncertain.

a. lower b. higher

4. Larger safety stock would make the average inventory level ___________.

a. higher b. lower c. unchanged

5. Suppose a linear program is feasible. If a constraint is removed, then the new linear program will always be still feasible.

a True b. False

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