Free Printable ACC 113_Midterm Review Quiz

1.

The minimal-spanning tree technique finds the shortest route to a series of destinations.

a)

True

b)

False

2.

In the minimal-spanning tree technique, it is necessary to start at the last node in the network.

a)

True

b)

False

3.

The maximal-flow technique would be helpful to city planners in determining how freeways should be expanded.

a)

True

b)

False

4.

The minimal-spanning tree technique determines the path through the network that connects all the points while minimizing total distance.

a)

True

b)

False

5.

The maximal-flow technique finds the maximum flow of any quantity or substance through a network.

a)

True

b)

False

6.

The concept of inventory is applicable to both manufacturing and service organizations.

a)

True

b)

False

7.

Under the assumptions made to develop the EOQ model, average inventory is one half of the maximum inventory.

a)

True

b)

False

8.

The economic order quantity helps one estimate the optimal number of units to purchase with each order.

a)

True

b)

False

9.

The reorder point occurs during a stockout.

a)

True

b)

False

10.

Safety stock is ignored when computing the reorder point.

a)

True

b)

False

11.

A technique that allows a researcher to determine the greatest amount of material that can move through a network is called

a)

maximal-route.

b)

maximal-flow.

c)

maximal-spanning.

d)

shortest-route.

e)

maximal-tree.

12.

The minimal-spanning tree technique would best be used

a)

by a forest ranger seeking to minimize the risk of forest fires.

b)

by a telephone company attempting to lay out wires in a new housing development.

c)

by an airline laying out flight routes.

d)

none of the above

e)

all of the above

13.

The shortest-route technique would best be used to

a)

to determine LAN network wiring within a building.

b)

to maximize traffic flow on a busy highway.

c)

by a trucking company making frequent but repeatable drops.

d)

none of the above

14.

All the nodes must be connected in which of the following techniques?

a)

shortest-route

b)

maximal-flow

c)

minimal-spanning tree

d)

none of the above

e)

all of the above

15.

If your goal was to construct a network in which all points were connected and the distance between them was as short as possible, the technique that you would use is

a)

shortest-route

b)

maximal-flow

c)

minimal-spanning tree

d)

none of the above

16.

In making inventory decisions, the purpose of the basic EOQ model is to

a)

minimize carrying costs.

b)

minimize ordering costs.

c)

minimize the sum of carrying costs and ordering costs.

d)

minimize customer dissatisfaction.

e)

minimize stock on hand.

17.

Daniel Trumpe has computed the EOQ for a product he sells to be 400 units. However, due to recent events he has a cash flow problem. Therefore, he orders only 100 units each time he places an order. Which of the following is true for this situation?

a)

Annual ordering cost will be lower than annual holding cost.

b)

Annual ordering cost will be higher than annual holding cost.

c)

Annual ordering cost will equal annual holding cost.

d)

Annual ordering cost will be unaffected by the order policy change.

e)

Nothing can be determined without more information.

18.

R.C. Barker makes purchasing decisions for his company. One product that he buys costs $50 per unit when the order quantity is less than 500. When the quantity ordered is 500 or more, the price per unit drops to $48. The ordering cost is $30 per order and the annual demand is 7,500 units. The holding cost is 10 percent of the purchase cost. If R.C. orders 500 units each time he places an order, what would the total annual holding cost be?

a)

$450

b)

$1,200

c)

$1,250

d)

$2,400

19.

The annual demand for a product has been projected at 2,000 units. This demand is assumed to be constant throughout the year. The ordering cost is $20 per order, and the holding cost is 20 percent of the purchase cost. Currently, the purchase cost is $40 per unit. There are 250 working days per year. Whenever an order is placed, it is known that the entire order will arrive on a truck in 6 days. Currently, the company is ordering 500 units each time an order is placed. What is the total holding cost for the year using this policy?

a)

$400

b)

$2,000

c)

$4,000

d)

$8,000

20.

Mark Achin sells 3,600 electric motors each year. The cost of these is $200 each, and demand is constant throughout the year. The cost of placing an order is $40, while the holding cost is $20 per unit per year. There are 360 working days per year and the lead-time is 5 days. If Mark orders 200 units each time he places an order, what would his average inventory be (in units)?

a)

100

b)

200

c)

60

d)

120

21.

Andre Candess manages an office supply store. One product in the store is computer paper. Andre knows that 10,000 boxes will be sold this year at a constant rate throughout the year. There are 250 working days per year and the lead-time is 3 days. The cost of placing an order is $30, while the holding cost is $15 per box per year. How many units should Andre order each time?

a)

200

b)

400

c)

500

d)

100

22.

Judith Thompson is the manager of the student center cafeteria. She is introducing pizza as a menu item. The pizza is ordered frozen from a local pizza establishment and baked at the cafeteria. Judith anticipates a weekly demand of 10 pizzas. The cafeteria is open 45 weeks a

year, 5 days a week. The ordering cost is $15 and the holding cost is $0.40 per pizza per year. What is the optimal number of pizzas Judith should order?

a)

184 pizzas

b)

9 pizzas

c)

5 pizzas

d)

28 pizzas

23.

The annual demand for a product is 1,000 units. The company orders 200 units each time an order is placed. The lead-time is 6 days, and the company has determined that 20 units should be held as a safety stock. There are 250 working days per year. What is the reorder point?

a)

20

b)

24

c)

44

d)

120

24.

The annual demand for a product has been projected at 2,000 units. This demand is assumed to be constant throughout the year. The ordering cost is $20 per order, and the holding cost is 20 percent of the purchase cost. Currently, the purchase cost is $40 per unit. There are 250 working days per year. Whenever an order is placed, it is known that the entire order will arrive on a truck in 6 days. Currently, the company is ordering 500 units each time an order is placed. What is the reorder point under the current policy?

a)

48

b)

100

c)

6

d)

24

25.

Andre Candess manages an office supply store. One product in the store is computer paper. Andre knows that 10,000 boxes will be sold this year at a constant rate throughout the year. There are 250 working days per year and the lead-time is 3 days. The cost of placing an order is $30, while the holding cost is $15 per box per year. If Andre orders 500 boxes each time he orders from his supplier, what would his total annual inventory cost be (holding cost plus ordering cost)?

a)

$3,000

b)

$4,350

c)

$3,075

d)

$3,750

ACC 113_Midterm Review Quiz

Total questions: 25

Worksheet time: 13mins

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