q1 The continuous review economic order quantity (EOQ) inventory model operates using two model parameters. These two parameters are:

Select one:

a.

Q, which represents a fixed order quantity and R, which represents a variable reorder point quantity of inventory.

b.

Q, which represents a variable order quantity and R, which represents a fixed reorder point quantity of inventory.

c.

Q, which serves as the amount of inventory that triggers the release of an order and R, which is the reorder quantity.

d.

Q, which represents a variable order quantity and R, which represents a variable reorder point quantity of inventory.

e.

Q, which represents a fixed order quantity and R, which represents a fixed reorder point quantity of inventory.

q2 The periodic review inventory model operates using two model parameters, TI (target inventory) and RP (review period). These two parameters are:

Select one:

a.

TI, which represents a variable quantity of units one would order up to and RP, which represents a fixed amount of time between orders.

b.

TI, which represents a fixed order quantity and RP, which represents a variable reorder point quantity of inventory.

c.

TI, which represents a fixed quantity of units one would order up to and RP, which represents a fixed amount of time between orders.

d.

TI, which represents a variable order quantity and RP, which represents a variable reorder point quantity of inventory.

e.

TI, which represents a fixed quantity of units one would order up to and RP, which represents a variable amount of time between orders.

q3 Assume expected demand during lead time averages 30 units with the standard deviation of demand during lead time being 10 units. What reorder point will provide a service level of 90% (or a stock out risk of 10%) during lead time while utilizing a continuous review inventory model? Use of a z-table is necessary to answer this question.

Select one:

a.

42.80 units

b.

46.40 units

c.

None of these

d.

39.00 units

e.

46.50 units

q4

What is the optimal order quantity while using a fixed-order-quantity (EOQ) inventory model if annual demand for a product is 5,000 units, order cost is $10, purchase price is $5, and annual carrying cost is $0.50 per unit?

Select one:

a.

141.42 units

b.

None of these

c.

447.21 units

d.

5,000 units

e.

200,000 units