QUESTION 21

Inventory costs include

1.

Carrying

2.

Ordering

3.

Shortage costs

4.

all of the above

QUESTION 22

The purpose of inventory management is to determine

1.

How much to order

2.

When to order

3.

all of the above

4.

None of the above

QUESTION 23

Inventory is a stock of items

1.

That needs to be ordered

2.

In the warehouse

3.

Kept on hand to meet demand

4.

none of the above

QUESTION 24

EOQ is the optimal order quantity that wills __________ total inventory costs.

1.

Maximize

2.

Minimize

3.

Steady

4.

Maintain

5.

Improve

QUESTION 25

In the basic EOQ model, if D=60 per month, S=$12, and H=$10 per unit per month, what is the EOQ?

1.

11

2.

12

3.

13

4.

14

QUESTION 26

In the basic EOQ model, if annual demand is 50, carrying cost is $2 per unity per year, and Ordering cost is $15, what is the EOQ?

1.

27.39

2.

26.39

3.

25.39

4.

24.39

5.

22.39

QUESTION 27

Joe scores 76 in his MNS where population average was 74 and STD [standard deviation] was 1.

He scores80 in his Math class where the population average was 78 and the STD was 1.

Acording to the above information, he did better with his MNS score?

True

False

QUESTION 28

Find the total cost for the following transportation problem using NW Corner Method. Cost is in US Dollars. Choose the best answer.

D1D2D3D4Availability [Supply]

O1641514

O2892716

O343625

Requirements610154

$128

$98

$99

$154