Variability in demand and$/$or lead time can be compensated for by safety stock.

Question $1$ options:

True

False

Question $2(1$ point$)$

Saved

The time interval between placing an order and receiving an order is called:

Question $2$ options:

Order delay

Cycle time

Lead time

Order interval

Question $3(1$ point$)$

Saved

Which is not considered a holding cost?

Question $3$ options:

Warehousing costs

Insurance

Building depreciation

Preparing purchase orders

Question $4(1$ point$)$

Saved

With an A$-$B$-$C system, an item that had a high demand quantity but a low annual dollar volume would probably be classified as:

Question $4$ options:

A

B

C

A or B

Question $5(1$ point$)$

Saved

In the basic EOQ model, a monthly demand of $50$ units, an ordering cost of $$100,$ and a holding cost of $$3/$unit per year will result in an EOQ of:

Question $5$ options:

$58$

$200$

$4,000$

$8,000$

Question $6(1$ point$)$

Saved

Which of the following is not one of the assumptions of the basic EOQ model?

Question $6$ options:

Annual demand requirements are known

Each order is received in a single delivery

Each order is received in a single delivery

Quantity discounts are available

Question $7(1$ point$)$

Saved

The materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of $50$ kilograms each day, 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 for delivery is four $(4)$ days.

Without allowing for safety stock, what reorder point should be used to reorder resin?

Question $7$ options:

$50$ kilograms remaining

$200$ kilograms remainin

$400$ kilograms remaining

$500$ kilograms remaining