Multiple Choice Questions:

1.In a supermarket, a vendor's restocking the shelves every Monday morning is an example of:

A. safety stock replenishment

B. economic order quantities

C. reorders points

D. fixed order interval

E. blanket ordering

2.In the basic EOQ model, if annual demand doubles, the effect on the EOQ is:

A. It doubles.

B. It is four times its previous amount.

C. It is half its previous amount.

D. It is about 70 percent of its previous amount.

E. It increases by about 40 percent.

3. In the basic EOQ model, an annual demand of 40 units, an ordering cost of $5, and a holding cost of $1 per unit per year will result in an EOQ of:

A. 20

B. square root of 200

C. 200

D. 400

E. none of these

4. in the basic EOQ model, if D = 60 per month, S = $12 and H = $10 per unit per month, EOQ is:

A. 10

B. 12

C. 24

D. 72

E. 144

5. In the basic EOQ model, if annual demand is 50, carrying cost is $2, and ordering cost is $15, EOQ is approximately:

A. 11

B. 20

C. 24

D. 28

E. 375