Question5

When the rate of replenishment is less than infinity but more than demand, the EMQ will be ____ the EOQ.

Greater than

Less than

Equal to

None of the above

Question6

Starfield Inc., orders planetary probes from its supplier Intergalactic at a cost of $1.50/probe. Starfield consumes the probes at the rate of 300/day and 365 days per year. Every time Starfield orders from Intergalactic it incurs a cost of $12. Starfield also faces an interest rate of 10% per year. Because the planetary probes are tiny storage costs are negligible. How many probes should Starfield order to minimize its costs?

219

854

4186

6279

7.

Question7

Under which condition would an order for inventory be triggered?

Inventory position is less than reorder point

Inventory on hand is less than reorder point

Inventory on order is less than reorder point

None of the above

8.

Question8

In a continuous review system, inventory is reviewed _____. (Fill in the blank)

Infrequently

Constantly

Randomly

On fixed time intervals

9.

Question9

When there is uncertainty in lead time, the safety stocks will be ______ as compared to safety stock when there is certainty in lead time.

Lower

Equal

Higher

None of the above

10.

Question10

Order up to level inventory policy is used when customers can place bulk orders or multiple customers can order at the same time.

True

False