\.In ROP, if demand and lead time are both constant, the safety stock would be
zero - ANSWERS✔-True
\.Two bin system is a type of reorder point model. - ANSWERS✔-True
OPSM TEST 2 QUESTIONS AND
CORRECT ANSWERS
\.A tire dealer would be using single period models to replenish inventory -
ANSWERS✔-False
\.Which one of the following is not a reason for holding inventory: - ANSWERS✔-a.
To decouple stages of production
b. As a hedge against inflation
c. To take advantage of quality discounts
d. To meet projected demands
e. To increase demand (correct)
\.Which one of the following describes the relation between ordering cost and
holding costs: - ANSWERS✔-1. The two are always equal to EQQ
2. They have inverse relationship i.e. when one increases the other decreases and
vice versa
zero - ANSWERS✔-True
\.Two bin system is a type of reorder point model. - ANSWERS✔-True
OPSM TEST 2 QUESTIONS AND
CORRECT ANSWERS
\.A tire dealer would be using single period models to replenish inventory -
ANSWERS✔-False
\.Which one of the following is not a reason for holding inventory: - ANSWERS✔-a.
To decouple stages of production
b. As a hedge against inflation
c. To take advantage of quality discounts
d. To meet projected demands
e. To increase demand (correct)
\.Which one of the following describes the relation between ordering cost and
holding costs: - ANSWERS✔-1. The two are always equal to EQQ
2. They have inverse relationship i.e. when one increases the other decreases and
vice versa
