Question: Below is output from QM for a Basic EOQ Model Parameter Demand rate (D) Ordering cost (S) Carrying cost (H) Value 64000 2000 25 Value

Below is output from QM for a Basic EOQ ModelBelow is output from QM for a Basic EOQ Model

Below is output from QM for a Basic EOQ Model Parameter Demand rate (D) Ordering cost (S) Carrying cost (H) Value 64000 2000 25 Value 3200 3200 1600 Parameter Optimal order quantity (Q*) Maximum Inventory Level Average inventory Orders per period (year) Annual Ordering cost Annual Carrying cost Total Inventory Cost 20 40000 40000 80000 This business operates 250 days a year. The lead time is 6 days. Use this information to answer questions 37 through 40 below. 37. The order cycle time in days is A. 12.5 B. 20 C. 2560 D. None of the above 38. The reorder point is A. 256 B. 533 C. 1536 D. 5120 39. The number of days required to completely deplete the optimal order quantity is A. 12.5 B. 20 C. 2560 D. None of the above 40. The optimal order quantity is the same value as the maximum inventory level because of A. Instantaneous receipt B. Varying demand C. The average inventory level D. Equal annual Ordering and Carrying costs

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