1. (2) Multiple Choice Pick the BEST answer and indicate the corresponding alphabet on the designated space at the beginning of each on the following:

1. _________ For the basic EOQ Model with instantaneous replenishment, this in NOT one of the assumptions:

1. Demand is known with certainty and is constant over time.
2. No shortages are allowed.
3. Lead-time for the receipt is constant.
4. Production rate is constant and is larger than demand rate.
5. Order Quantity is received all at once

2. __________ For the basic EOQ Model with non-instantaneous replenishment, this in NOT one of the assumptions:

1. Demand is known with certainty and is constant over time.
2. No shortages are allowed.
3. Lead-time for the receipt is constant.
4. Production rate is constant and is larger than demand rate.
5. Order Quantity is received all at once.

3. ________ For the case of reorder point, when the reorder quantity (R) is larger than EOQ, then the adjusting procedure is:

1. Reorder Quantity becomes equal to EOQ quantity.
2. Not Applicable, R is NOT a function of EOQ; (R = m x L + z x s x L ).
3. Reorder quantity is reduced by EOQ quantity.
4. EOQ is increased by the difference
5. Reorder Quantity is reduced by EOQ quantity continuously until R is less than EOQ.
6. Reduce the lead-time (L) so that the reorder quantity becomes less the EOQ.

4. _________ When the safety stock is zero (0), the service level is:

1. 100%
2. 0%
3. 96.3%
4. 50%
5. 87.6%