Question $10(0\mathrm{.}5$ points$)$

EOQ inventory models are primarily concerned with the timing of orders.

True

False

Question $11(3$ points$)$

The materials manager must periodically place orders for resin. She knows that manufacturing uses resin at

an annual rate of $14500$ kilograms, and that it costs $$\mathrm{.}04$ per day to hold a kilogram of resin in inventory. She

also knows that the order costs for resin are $$100$ per order, and that the lead time is $4$ days. If the factory

operates for $300$ days per year, what reorder point should be used to reorder resin? $($N$.$B$.$: Round to the

nearest integer$)$

Your Answer.

Question $12(0\mathrm{.}5$ points$)$

The principal objective of inventory management is to maximize customer service levels by ensuring items are

available at all times.

True

False

Question $13(0\mathrm{.}5$ points$)$

Which of the following is not an assumption of the EOQ with planned shortages model?

Demand rate is constant.