OPERATIONS MANAGEMENT CLASS - DO NOT COPY FROM OTHERS

Question 7. How many statements are correct for Constant Demand? (A) 0 (B) 1 (C)2 (D3 (E) 4 Statement 1. If inventory period increases, then lot size increases. Statement 2. If safety stock increases, then reorder point increases. Statement 3. If unit carrying cost increases, then economic order quantity decreases. Statement 4. If lot size increases, then turnover rate decreases. Question 8. How many statements are correct for Stochastic Demand? (A) 0 (B) 1 (C) 2 (D) 3 (E) 4 Statement 1. For single period EOQ, if long cost increases, then economic order quantity increases. Statement 2. For continuous review system, if demand variance increases, then statistical safety stock decreases. Statement 3. For continuous review system, if lead time increases, then statistical safety stock decreases. Statement 4. For periodic review system, if inventory period decreases, then the base stock level increases