Inventory Management in Business Management : Practice MCQ Questions & Answers with Explanations

When using EOQ ordering, the order quantity must be computed in every order cycle.

Use of the fixed-interval model requires having a perpetual inventory system.

The objective of inventory management is to minimize holding costs.

The economic order quantity cannot be used when holding costs are a percentage of purchase cost.

Buffer stock is the level of stock

Which of the following is not an inventory?

Which model does not take into account the amount of inventory on hand?

Using the EOQ model, if an items holding cost increases, its order quantity will decrease.

Using the basic EOQ model, if the ordering cost doubles, the order quantity will be

The two basic questions in inventory management are how much to order and when to order.

The time period between placing an order its receipt in stock is known as

The order cost per order of an inventory is Rs. 400 with an annual carrying cost of Rs. 10 per unit. The Economic Order Quantity (EOQ) for an annual demand of 2000 units is

The minimum stock level is calculated as

The following classes of costs are usually involved in inventory decisions except

The cost of insurance and taxes are included in

Setup costs are analogous to which one of these costs?

Re-ordering level is calculated as

Other things beings equal, an increase in lead time for inventory orders will result in an increase in the:

Inventory might be held to take advantage of order cycles.

Increasing the order quantity so that it is slightly above the EOQ would not increase the total cost by very much.