If average demand for an item is 21 units per day, safety stock is 4 units, and lead time is 2 days, the reorder point (ROP) will be:

Select one:

a. 42

b. None of these

c. 84

d. 46

Which product is usually bought on a reorder point (ROP) basis?

Select one:

a. wedding gifts

b. textbooks

c. sugar

d. newspaper

If EOQ = 360 units, order costs are $5 per order, and carrying costs are $0.20 per unit, what is the usage in units?

Select one:

a. 2592

b. 129600

c. 25920

d. 18720

Which of the following relationships hold true for safety stock?

Select one:

a. the higher the profit margin per unit, the higher the safety stock necessary.

b. the greater the uncertainty associated with forecasted demand, the smaller the safety stock.

c. the greater the risk of running out of stock, the smaller the safety of stock.

d. the larger the opportunity cost of the funds invested in inventory, the larger the safety stock.

Which of the following items would be most likely to have dependent demand?

Select one:

a. Electric starters

b. Flowers

c. Toy trains

d. Cookies