Question A) In general, inventory holding costs for a firm reflect the opportunity cost of capital.

Select one:

-True

-False

Question b) A product that takes a short time to manufacture, or a short time to sell, will have a low turnover rate.

Select one:

-True

-False

Question C) Which of the following is not an assumption of the EOQ with planned shortages model?

Select one:

a. Demand is constant

b. None of the above is the right answer

c. There are no quantity discounts

d. Lead Time is constant

e. There are no backorders

Question D) Lead time is exactly 20 days long. Daily demand is normally distributed with a mean of 10 gallons per day and a standard deviation of 2 gallons. What is the Standard Deviationof Lead Time Demand ?

Select one:

a. 80

b. 220

c. None of the above is the right answer

d. 10

e. 40