Question: 8. You are given the following data: EOO 4000 units Minimum Usage 300 units Minimum Lead Time 5 days Maximum Level 6 times the reorder
8. You are given the following data: EOO 4000 units Minimum Usage 300 units Minimum Lead Time 5 days Maximum Level 6 times the reorder level Calculate the maximum level? a. 6,000 units b. 5,000 units c. 4,000 units d. 3,000 units 9. A company always determines its order quantity for a raw material by using the economic order quantity (EOQ) model. What would be the effects on the EOQ and the total annual holding cost of a decrease in the cost of ordering a batch of raw material? EOQ Annual holding cost a. Higher Lower b. Higher Higher C. Lower Higher d. Lower Lower 10. Under the step-down method of re-apportionment of cost of service departments, the cost of the last service department is apportioned only to: a. no department. b. the service departments. c. the production departments. d. both b and c above
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