1. The rate for a transportation movement is 3.50/cwt. The shipper has two pallets of 1800 pounds each to send. What is the cost of the shipment?

A. $1028.57

B $63.00

C $514.29

D $126.00

2. The shipper needs to move 2,000,000 of chemicals by rail. The cost of the movement from LA to Denver is $2300 per car. Each car holds 125,000 pounds. What is the annual cost of freight?

A. $23,000

B. $869.57

C. $18,400

D. $36,800

3. The shipper just paid $2400 to move 6,000 pounds to NY. What rate (cwt) was paid?

A. $40/cwt

B. $40/CWT

C. 40/cwt

D. 40/CWT

4. The EOQ for purchasing tires for an automotive plant is 5,200 tires per order. Each tire cost $60. What is the average inventory in units?

A. $156,000

B. 86.67 (87) tires per year

C. $23,400

D. 2,600 tires per year

5. The EOQ for purchasing tires for an automotive plant is 5,200 tires per order. Each tire cost $60.What is the average inventory in Dollars?

A. $156,000

B. $23,400

C. 2,600 tires per year

D. 86.67 (87) tires per year

6. The EOQ for purchasing tires for an automotive plant is 5,200 tires per order. Each tire cost $60. What is the carrying cost if the cost of holding inventory is 15% per year?

A. $780.00

B. $390.00

C. $312,000.00

D. $23,400

7. You order 250,000 bowls per year to be used in the production of ready to eat meals. The EOQ was calculated at 18,000 bowls per order. Ordering cost are $25 per order.How many orders per year are placed?

A. 350 orders per year

B. 14 orders per year

C. 720 orders per year

D. 10,000 orders per year

8. You order 250,000 bowls per year to be used in the production of ready to eat meals. The EOQ was calculated at 18,000 bowls per order. Ordering cost are $25 per order. What are the total annual ordering costs?

A $10,000

B $350

C $720

D $14