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Question 35 (2.5 points) Recall the inventory simulation we did in class (where we assumed that the demand is random and there is no lead

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Question 35 (2.5 points) Recall the inventory simulation we did in class (where we assumed that the demand is random and there is no lead time). Regarding the comparison between the constant order policy and the order-up-to policy, which of the following statement is FALSE? The order size in an order-up-to policy may differ from time to time. The order-up-to policy always keeps the beginning inventory level on the next period equal to the same value, while the constant-order policy may not. In the constant order policy, if the simuation shows that the ending inventory is more likely to be positive than to be negative, then it implies that the optimal order quantity is smaller than the order quantity currently being used. O In the oreder-up-to policy, the beginning inventory level on the next period can be determined by solving a Newsvendor problem. In the order-up-to policy, one can find the optimal target inventory in the next period using the Newsvendor model. Question 36 (2.5 points) A restaurant currently uses 1250 boxes of napkins each week (assume 1 year =50 weeks) at a constant daily rate. The cost to order napkins is $200.00 per order and the annual carrying cost for one box of napkins is 5% of its purchasing value. The purchasing cost for each box is $20. If the restaurant orders the economic order quantity each time an order is placed, then the total annual setup (ordering) cost will be (choosing the closest answer) 17678 2500 3952 559 3536 Question 37 (2.5 points) Which statement is TRUE about Project Management? There can be more than one ways to draw the precedence graph, but all precedence graphs must have an equal number of vertices. On a path that is not critical, all activities have a strictly positive slack. Project crashing always aims to minimize project duration subject to budget constraint. O The earliest finish time of a task is equal to the sum of the latest shart time of this task and the task duration. None of the above statements are true. Question 38 (2.5 points) Regarding the difference between the Newsvendor model and the EOQ model, which of the following statements is FALSE? The Newsvendor model assumes that the demand is uncertain/unknown, whereas the EOQ model assumes that the demand is exactly known. The purchasing cost per unit affect the optimal ordering quantity for both the Newsvendor model and the EOQ model. The Newsvendor model balances the trade-off between the overstock (overage) and understock (underage) costs, whereas the EOQ model balances the trade-off between the fixed ordering cost and the holding cost. In both models, the optimal solution is where the marginal value of ordering one more unit is equal to zero. The Newsvendor model is a one-period problem, whereas the EOQ model is a multi-period

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