21.
In the two-bin system, the quantity in the second bin is equal to the:
A
FOI
B
None of these
C
EOQ
D
ROP
Loading practice questions
33 practice sets · Page 2 of 2
In the two-bin system, the quantity in the second bin is equal to the:
FOI
None of these
EOQ
ROP
In the basic EOQ model, annual ordering cost and annual ordering cost are equal for the optimal order quantity.
true.
false.
In an A-B-C system, B items typically represent about this percentage of items:
50%
30%
90%
75%
If average demand for an item is 21 units per day, safety stock is 4 units, and lead time is 2 days, the ROP will be:
42
none of these
84
46
If a decrease in unit price causes the average demand rate to increase, which one of these would not increase?
annual holding cost
the ROP
the EOQ
lead time
Holding and ordering costs are inversely related to each other.
true.
false.
Average stock level can be calculated as
Minimum stock level + 1/3 of Re-order level
Maximum stock level + 1/3 of Re-order level
Minimum stock level + ½ of Re-order level
Maximum stock level + ½ of Re-order level
A two-bin system is essentially a simple reorder point system.
true.
false.
A store that sells daily newspapers could use the single-period model for reordering.
true.
false.
A fixed-interval ordering system would be used for items that have independent demand.
true.
false.
Which product is usually bought on an ROP basis?
sugar
newspaper
textbooks
wedding gifts
Which product is usually bought on a fixed interval basis?
sugar
brownies
textbooks
wedding gifts
Which of the following is true for Inventory control?
Ordering cost decreases with lo size
All of the above
Economic order quantity has minimum total cost per order
Inventory carrying costs increases with quantity per order