Multiple Choice Questions: $3$ points each, $15$ points in total.

$(1)$The appropriate level of safety stock is typically determined by:

a$.$ choosing the level of safety stock that assures a given service level.

b$.$ minimizing expected stockout costs.

c$.$ minimizing total inventory carrying costs.

d$.$ carrying sufficient safety stock so as to eliminate all stockouts.

e$.$ Minimized overall cost including both carrying cost and ordering cost

$(2)$ In an EOQ model, if the annual demand doubles, then the optimal order size will:

a$.$ remain the same.

b$.$ increase by $41\mathrm{.}4\%.$

c$.$ increase by $50\%.$

d$.$ increase by $75\%.$

e$.$ Will double as well.

$(3)$ The two most important inventory$-$based questions answered by the typical inventory model are:

a$.$ how many an item to order and what is the cost of this order.

b$.$ how many of an item to order and with whom the order should be placed

c$.$ when to place an order and how many of an item to order.

d$.$ when to place an order and what is the cost of the order.

e$.$ All of above are true

$(4)$ The cost of insurance and taxes are included in

a$.$ Cost of ordering

b$.$ Set up cost

C$.$ Inventory carrying cost

d$.$ Cost of shortage

e$.$ All of above

$(5)$ The introduction of quantity discounts will cause the number of the units ordered to be:

a$.$ smaller than EOQ

B$)$ the same as EOQ

C$)$ greater than EOQ

D$)$ the same or smaller than EOQ

E$)$ the same or greater than EOQ