True False 0 1 pts Question 15 Incorrect Incorrect The optimal order quantity

True false 0 1 pts question 15 incorrect incorrect

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True False 0 / 1 pts Question 15 Incorrect Incorrect The optimal order quantity for the quantity discount model is always at one of the price breakpoints. True False 0 / 1 pts Question 16 Incorrect Incorrect In the economic manufacturing quantity model (EMQ), the annual consumption rate must be less than the annual production rate. True False
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1 / 1 pts Question 17 When demand and lead time are constant, the reorder point (ROP) is less than the demand during lead time. True False 1 / 1 pts Question 18 When both the demand and lead time of a product are variable, firms must keep a higher safety stock level compared to variations in just demand, to offer the same service level. True False 1 / 1 pts Question 19 The statistical reorder point is calculated as the average demand during the delivery lead time plus the desired safety stock. True False
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0 / 1 pts Question 20 Incorrect Incorrect The (s, S) continuous review policy is to order the same quantity, Q, when physical inventory reaches the reorder point. True False 1 / 1 pts Question 21 Independent demand is the: a. Internal demand for all end-item parts and materials. b. Demand for a firm’s end products. c. d. Forecasted demand for purchased items. Absolute demand for all items. A B D C
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1 / 1 pts Question 22 Which of the following would be considered a dependent demand item? a. Bicycle tires used to assemble a bicycle b. Televisions c. Furniture d. Retail customers B D A C 1 / 1 pts Question 23 Lubricants for production equipment which are not parts of the final products are called: a. Raw materials b. Work-in-process c. Maintenance, repair and operating supplies d. Finished goods
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e. Cycle stock A B C D 1 / 1 pts Question 24 Which one of the following is NOT a reason for firms to carry inventory? a. To meet variations in product demand b. To increase production change/setup costs c. To allow for production scheduling flexibility d. To take advantage of quantity discounts e. To maintain independence of operations C B D A
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0 / 1 pts Question 25 Incorrect Incorrect Which one of the following is NOT a reason for firms to carry inventory? a. To meet variations in product demand b. To increase production change/setup costs c. To allow for production scheduling flexibility d. To take advantage of quantity discounts e. To maintain independence of operations B C D A 0 / 1 pts Question 26 Incorrect If at the end of the year, the cost of revenue = $2,500, total revenue = $12,000 and inventory value = $2,000, the inventory turnover ratio would be: a. 0.208 b. 0.375 c. 2.667
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d. 0.800 e. 1.250 E D C B A 0 / 1 pts Question 27 Incorrect Incorrect Classify the following inventory items as either A, B, or C items using the ABC inventory control system: Item # Annual Sales Unit Cost 1 130 units $ 4.00 2 400 units 15.30 3 25 units 17.00 4
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1320 units 1.25 5 90 units 2.10 a. item 1 (C), item 2 (A), item 3 (C), item 4 (B), item 5 (C) b. item 1 (B), item 2 (A), item 3 (A), item 4 (C), item 5 (C) c. item 1 (C), item 2 (B), item 3 (C), item 4 (A), item 5 (C) d. item 1 (A), item 2 (B), item 3 (C), item 4 (A), item 5 (B) e. item 1 (B), item 2 (C), item 3 (B), item 4 (C), item 5 (A) A B C D E 0 / 1 pts Question 28 Incorrect Incorrect Which of the following would refer to the 80/20 rule when applied to the ABC
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inventory control system?
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