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WorksheetsPQT Prefinal Quiz on Inventory Mgt
Total questions: 10
Worksheet time: 13mins
ABC analysis is based upon the principle that
all items in inventory must be monitored very closely
there are usually a few critical items, and many items which are less critical
an item is critical if its usage is high
d.more time should be spent on class “C” items because there are more of them
more time should be spent on class “C” items because there are more of them
ABC analysis divides on-hand inventory into three classes, generally based upon
item quality
the number of units on hand
annual demand
annual peso volume
The primary purpose of the basic economic order quantity model shown below is
Q* = H2DS
to calculate the reorder point, so that replenishments take place at the proper time
to minimize the sum of carrying cost and holding cost
to maximize the customer service level
to minimize the sum of setup cost and holding cost
A certain type of computer costs $1,000, and the annual holding cost is 25%. Annual demand is 10,000 units, and the order cost is $150 per order. What is the approximate economic order quantity?
16
70
110
183
Most inventory models attempt to minimize
the likelihood of a stockout
the number of items ordered
total inventory based costs
the number of orders placed
In the basic EOQ model, if D=6000 per year, S=$100, H=$5 per unit per month, the economic order quantity is approximately
24
100
141
490
Thomas' Bike Shop stocks a high volume item that has a normally distributed demand during the reorder period. The annual demand is 19600 units, the lead time is 4 days. What should the reorder point be if the shop operates 300 days per year?
260 units
262 units
265 units
261 units
Given the following data: D=65,000 units per year, S = $120 per setup, P = $5 per unit, and carrying cost 25% of price per year, calculate the EOQ following EOQ behavior.
3500 units
3533 units
2500 units
2533 units
Using the formula below, Given the following data: D=65,000 units per year, S = $120 per setup, and carrying cost $1.25 per year, calculate total annual costs following EOQ or Q* of 3,533 units. TC = (Q⋅D)S + (2Q⋅)H
$4,455.88
$4,445.88
$4,415.88
$4,400
Given the following data: D=65,000 units per year, S = $120 per setup, P = $5 per unit, and carrying cost 25% of price per year, calculate the expected number of orders per year following EOQ behavior.
15 orders
18 orders
19 orders
20 orders
