1) At EOQ= 1200 units, annual holding cost comes out to be $1600, its ordering cost the 2) There are 360 days per year and the annual demand is known to be 720 units, then daily usage must be as per EOQ Model is" 3 units 2 units can't be determined 3) The internal demand for parts based on the demand of the final products in which parts are used is called Finished goods Independent Demands Dependent Demands 4) Given that EOQ is 500 units,annual demand is 10,000 units then number of orders be placed in year will be" 200 20 40 Information is not sufficient 5) Carrying inventory is costly because it Incurs inventory Carrying Cost Ties up capital Risk of obsolescene All of the above 6) Stock that cushions in fluctuation of demand and supply or against uncertain lead times is called MRO Raw Material Buffer Stock 7) "If the inventory turnover comes to be 8.4, then days of inventory can be calcualated by " 365/8.4 8.4/365 8.4*365 8) ABC analysis is often combined with 80/20 Rule MOQ Huffman's Rule 9) Inventory serving as buffer between interdependent operations is Safety Stock Anticipated Stock Decoupling Cyclic inventory 10) 16 orders are placed in a year and number of working days is 320. Time between orders will be 20 days 1/20 days 16 days 11) All the inventories can perform the function of decoupling invenorty TRUE FALSE 12) Faster turnovers are generally viewed as positive trend because it indicates the company is able to generate more revenue per dollar in inventory investment TRUE FALSE 13) Which of the inventory cost is analogous to set up cost? Holding cost Purchase cost Ordering cost All of the above 14) At EOQ, holding cost becomes equal to ordering cost" TRUE FALSE Not Necessary 15) Annaul demand is 8,000 units,no of working days in a year is 200 and re-ordering point is 160 units then lead time must be" 10 days 40 days 4 days Information is not sufficient 16) Shrinkage cost and obsolescene cost are part of Set up cost Ordering Cost Holding Cost 17) Stock that cushions in fluctuation of demand and supply or against uncertain lead times is called MRO Raw Material Buffer Stock 18) If the inventory turnover comes to be 8.4, then days of inventory can be calcualated by " 365/8.4 8.4/365 8.4*365 19) Carrying inventory is costly because it Incurs inventory Carrying Cost Ties up capital Risk of obsolescene All of the above 20) Many organizations use cycle counting to reconcile discrepancies between their physical inventory and inventory record on a monthly or quaterly basis TRUE FALSE 21) Faster turnovers are generally viewed as positive trend because it indicates the company is able to generate more revenue per dollar in inventory investment TRUE FALSE 22) The ratio that shows how many times a company turnovers its inventory is called Cycle Count Inventory Turnover Investment Turnover Sales Turnover 23) EOQ Model is used for Dependent Demands Independent Demands For both 24) The basic order decision in EOQ is to determine the optimal order size that minimizes total annual inventory Cost size Order Frequency