Homework 2
Due Oct 19 at 3:40pm Points 100 Questions 25
Available until Oct 19 at 3:40pm Time Limit None Allowed Attempts Unlimited
This quiz was locked Oct 19 at 3:40pm.
A empt History
Attempt Time Score
LATEST Attempt 1 2,870 minutes 88 out of 100
Score for this attempt: 88 out of 100
Submitted Oct 19 at 3:21pm
This attempt took 2,870 minutes.
Question 1 pts
The objective of the economic order quantity is to minimize the total:
Annual Purchase Cost
Annual Holding Cost
Correct! Annual Inventory Cost
Annual Ordering Cost
Question 2 pts
Jack owns a local trucking company. With fuel costs being expensive, Jack wants to
evaluate how much fuel, on average, he should store in his 6,800 gallon fuel tank.
Each year Jack uses 68,000 gallons of diesel (usage is spread evenly throughout the
year). Jack knows with certainly that he can have a load of fuel delivered in 5 days.
, The price of fuel is $2.04 per gallon and there is a separate $50 ordering fee per
order. Jack thinks his holding cost per unit is 40%. If Jack orders at EOQ, what will
be the average inventory of fuel in his 6,800 gallon tank?
~1,202 gallons
~1,278 gallons
~2,164 gallons
Correct! ~1,443 gallons
Question 3 pts
What will be the effect on average inventory if Jack experiences a 50% decrease in
demand and a doubling of the ordering costs.
Average inventory will double
You Answered Average inventory will be reduced by 50%
Average inventory will be reduced by 33%
orrect Answer Nothing, it will stay the same
Question 4 pts
In a continuous review system of inventory management
Correct! Quantity ordered is constant per each order.
Time between orders is constant.
, There is a target inventory position to achieve
Stockouts are impossible
Question 5 pts
Ye’ Olde Barrel Shop sells oak barrels to a local winery. The Master Cooper would
like to reduce her oak lumber inventory by determining the optimal number of oak
boards to order. The annual demand averages 33,000 boards and the order cost is
$28.00 per order. Holding cost is estimated to be 20%. The purchase cost of each
board is $25.00. The standard deviation of daily demand is 3 boards. The standard
deviation of lead time is 2.0 days. Assume 263 days in the year and an average lead
time of 2 days.
What is the EOQ?
Correct! Less than or equal to 800 units
More than 800 units but less than or equal to 850 units
More than 850 units but less than or equal to 900 units
More than 900 units
Question 6 pts
Ye’ Olde Barrel Shop sells oak barrels to a local winery. The Master Cooper would
like to reduce her oak lumber inventory by determining the optimal number of oak
boards to order. The annual demand averages 33,000 boards and the order cost is
$28.00 per order. Holding cost is estimated to be 20%. The purchase cost of each
board is $25.00. The standard deviation of daily demand is 3 boards. The standard
deviation of lead time is 2.0 days. Assume 263 days in the year and an average lead
time of 2 days.
If a service level of 93% is desired during the reorder interval, what is the reorder
point? Remember you cannot order partial units, round to the nearest whole unit in
the LAST step.
Due Oct 19 at 3:40pm Points 100 Questions 25
Available until Oct 19 at 3:40pm Time Limit None Allowed Attempts Unlimited
This quiz was locked Oct 19 at 3:40pm.
A empt History
Attempt Time Score
LATEST Attempt 1 2,870 minutes 88 out of 100
Score for this attempt: 88 out of 100
Submitted Oct 19 at 3:21pm
This attempt took 2,870 minutes.
Question 1 pts
The objective of the economic order quantity is to minimize the total:
Annual Purchase Cost
Annual Holding Cost
Correct! Annual Inventory Cost
Annual Ordering Cost
Question 2 pts
Jack owns a local trucking company. With fuel costs being expensive, Jack wants to
evaluate how much fuel, on average, he should store in his 6,800 gallon fuel tank.
Each year Jack uses 68,000 gallons of diesel (usage is spread evenly throughout the
year). Jack knows with certainly that he can have a load of fuel delivered in 5 days.
, The price of fuel is $2.04 per gallon and there is a separate $50 ordering fee per
order. Jack thinks his holding cost per unit is 40%. If Jack orders at EOQ, what will
be the average inventory of fuel in his 6,800 gallon tank?
~1,202 gallons
~1,278 gallons
~2,164 gallons
Correct! ~1,443 gallons
Question 3 pts
What will be the effect on average inventory if Jack experiences a 50% decrease in
demand and a doubling of the ordering costs.
Average inventory will double
You Answered Average inventory will be reduced by 50%
Average inventory will be reduced by 33%
orrect Answer Nothing, it will stay the same
Question 4 pts
In a continuous review system of inventory management
Correct! Quantity ordered is constant per each order.
Time between orders is constant.
, There is a target inventory position to achieve
Stockouts are impossible
Question 5 pts
Ye’ Olde Barrel Shop sells oak barrels to a local winery. The Master Cooper would
like to reduce her oak lumber inventory by determining the optimal number of oak
boards to order. The annual demand averages 33,000 boards and the order cost is
$28.00 per order. Holding cost is estimated to be 20%. The purchase cost of each
board is $25.00. The standard deviation of daily demand is 3 boards. The standard
deviation of lead time is 2.0 days. Assume 263 days in the year and an average lead
time of 2 days.
What is the EOQ?
Correct! Less than or equal to 800 units
More than 800 units but less than or equal to 850 units
More than 850 units but less than or equal to 900 units
More than 900 units
Question 6 pts
Ye’ Olde Barrel Shop sells oak barrels to a local winery. The Master Cooper would
like to reduce her oak lumber inventory by determining the optimal number of oak
boards to order. The annual demand averages 33,000 boards and the order cost is
$28.00 per order. Holding cost is estimated to be 20%. The purchase cost of each
board is $25.00. The standard deviation of daily demand is 3 boards. The standard
deviation of lead time is 2.0 days. Assume 263 days in the year and an average lead
time of 2 days.
If a service level of 93% is desired during the reorder interval, what is the reorder
point? Remember you cannot order partial units, round to the nearest whole unit in
the LAST step.
