BUSI 342 EXAM 4 LATEST

BUSI 342 EXAM 4 LATEST • Question 1 Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and carrying costs are 4 cents per pound per day. Lead time for each order is three days, and the pepperoni itself costs $3.00 per pound. If she were to order 80 pounds of pepperoni at a time, what would be the length of an order cycle? Selected Answer: Response Feedback: 4 days correct MC Qu. 115 Ann Chovies, owner of the Perfect Pasta Pizza... AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 13-08 Describe the basic EOQ model and its assumptions and solve typical problems. Topic: How Much to Order: Economic Order Quantity Models • Question 2 In the basic EOQ model, if annual demand doubles, the effect on the EOQ is: 3 out of 3 points Selected Answer: Response Feedback: It increases by about 40 percent. correct MC Qu. 75 In the basic EOQ model, if annual demand doubles,... AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Learning Objective: 13-08 Describe the basic EOQ model and its assumptions and solve typical problems. Topic: How Much to Order: Economic Order Quantity Models • Question 3 3 out of 3 points When carrying costs are stated as a percentage of unit price, the minimum points on the total cost curves: Selected Answer: Response Feedback: do not line up. correct MC Qu. 63 When carrying costs are stated as a percentage... AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 3 Hard Learning Objective: 13-10 Describe the quantity discount model and solve typical problems. Topic: How Much to Order: Economic Order Quantity Models • Question 4 3 out of 3 points Average demand for a particular item is 1,200 units per year. It costs $100 to place an order for this item, and it costs $24 to hold one unit of this item in inventory for one year. If the fixed-order-interval model is chosen in this instance, how often (on average) will this item be ordered? Selected Answer: Response Feedback: once a month correct MC Qu. 57 Average demand for a particular item is... AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 13-12 Describe situations in which the fixed-orderinterval model is appropriate, and solve typical problems. Topic: How Much to Order: Fixed-Order-Interval Model • Question 5 0 out of 3 points The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to 5 percent of the cost of the beer. If he were to order 16 cases of Stein beer at a time, what would be the average inventory level? Selected Answer: Response Feedback: 12 cases incorrect MC Qu. 111 The manager of the Quick Stop Corner Convenience... AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 13-08 Describe the basic EOQ model and its assumptions and solve typical problems. Topic: How Much to Order: Economic Order Quantity Models