Question: QUESTION 32 1. What is the effect on total inventory carrying costs if order size is increased? a. Costs increase b. Costs decrease C c.

QUESTION 32 1. What is the effect on total

QUESTION 32 1. What is the effect on total inventory carrying costs if order size is increased? a. Costs increase b. Costs decrease C c. Costs remain the same d. The effect cannot be determined QUESTION 33 1. What will be the effect on average inventory, if the order quantity is Increased by 100 units (assuming constant demand / usage)? [Hint: EOQ situation.] 0 a. An increase of indeterminate units b. A decrease of 100 units c. An increase of 50 units Cd. A decrease of 50 units QUESTION 34 1. If ordering cost per order is assumed to be constant, what is the effect on annual ordering cost by increasing the order size Q? c a. To decrease C b. To increase c. To remain the same Od. The effect cannot by determined QUESTION 35 1. Using the fixed order quantity model under conditions of CERTAINTY, which is the reorder point if lead time is a constant 5 days, and yearly demand is 10000 units (assuming 250 working days in the year)? a. 100 b. 200 C c. 400 od.5000 e. 10000

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