# Which of the following could be determined by using

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7. Which of the following could be determined by using the economic order quantity formula? a. Optimum size of a production run b. Safety-stock c. Stock-out cost d. Order point
8. The order size determined by the economic order quantity formula minimizes the annual inventory cost which is comprised of ordering costs and
b. Stock-out cost c. Set-up cost d. Carrying cost 9. For its economic order quantity (EOQ) model, a company has a cost of placing an order equal to P10, and an annual cost of carrying one unit in stock equal to P2. If the cost of placing an order increases by 20% and the annual cost of carrying one unit in stock increases by 25% and all other considerations remain constant, the EOQ will
10. Uncertainty regarding product demand and delivery time for replenishing stock affects the size of a safety stock inventory. In this regard, which of the following statements are correct? i. The more certain is the delivery time for replenishing stock, the more safety stock is needed. ii. The less certain is the delivery time for replenishing stock, the more safety stock is needed. iii. The more certain is product demand, the more safety stock is needed. iv. The less certain is product demand, the more safety stock is needed.
11. With regard to the optimal order quantity (Q * ), which of the following statements are correct? i. As carrying cost per unit increases, Q * increases. ii. As total demand over the planning period increases, Q * increases. iii. As ordering cost per unit increases, Q * increases. a. i only b. ii and iii c. ii only d. i, ii, and iii
12. The is the time period that elapses from the point when a firm uses the raw materials in manufacturing a finished good to the point when the finished good is sold.
13. A firm may have a negative cash conversion cycle if it carries .
14. Jae Co. uses the economic order quantity (EOQ) model for inventory management. A decrease in which one of the following variables would increase the EOQ?
b. Cost per order. c. Safety stock level. d. Carrying costs.