OPER 3600 MOCK EXAM QUESTIONS WITH
CORRECT ANSWERS!!
Which of the following statements about the basic EOQ model is TRUE?
a. If the ordering cost were to double, the EOQ would rise.
b. If the annual demand were to double, the EOQ would increase.
c. If the carrying cost were to increase, the EOQ would fall.
d. If annual demand were to double, the number of orders per year would increase.
e. All of the above statements are true.
e. All of the above statements are true.
Which of the following statements about the basic EOQ model is FALSE?
a. If the setup cost were to decrease, the EOQ would fall.
b. If annual demand were to increase, the EOQ would increase.
c. If the ordering cost were to increase, the EOQ would rise.
d. If annual demand were to double, the EOQ would also double.
e. All of the above statements are true.
d. If annual demand were to double, the EOQ would also double.
A product whose EOQ is 40 experiences a decrease in ordering cost from $90 per order to
$10. The revised EOQ is
one-third as large
A product whose EOQ is 400 experiences a 50% increase in demand. The new EOQ is
increased by less than 50%
, For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model
was 200 units and the total annual inventory (carrying and setup) cost was $600. The
inventory carrying cost per unit per year for this item is
$3.00
A product has demand of 4000 units per year. Ordering cost is $20 and holding cost is $4
per unit per year. The EOQ model is appropriate. The cost-minimizing solution for this
product will cost _______ per year in total annual inventory costs.
$800
Which of the following statements regarding the reorder point is TRUE?
a. The reorder point is that quantity that triggers an action to restock an item.
b. There is a reorder point even if lead time and demand during lead time are constant.
c. The reorder point is larger than d x L if safety stock is present.
d. The fixed-period model has no reorder point.
e. All of the above are true.
e. All of the above are true.
The EOQ model with quantity discounts attempts to determine
how many units should be ordered
An inventory decision rule states "when the inventory level goes down to 14 gearboxes, 100
gearboxes will be ordered." Which of the following statements is true?
a. One hundred is the reorder point, and 14 is the order quantity.
b. Fourteen is the reorder point, and 100 is the order quantity.
CORRECT ANSWERS!!
Which of the following statements about the basic EOQ model is TRUE?
a. If the ordering cost were to double, the EOQ would rise.
b. If the annual demand were to double, the EOQ would increase.
c. If the carrying cost were to increase, the EOQ would fall.
d. If annual demand were to double, the number of orders per year would increase.
e. All of the above statements are true.
e. All of the above statements are true.
Which of the following statements about the basic EOQ model is FALSE?
a. If the setup cost were to decrease, the EOQ would fall.
b. If annual demand were to increase, the EOQ would increase.
c. If the ordering cost were to increase, the EOQ would rise.
d. If annual demand were to double, the EOQ would also double.
e. All of the above statements are true.
d. If annual demand were to double, the EOQ would also double.
A product whose EOQ is 40 experiences a decrease in ordering cost from $90 per order to
$10. The revised EOQ is
one-third as large
A product whose EOQ is 400 experiences a 50% increase in demand. The new EOQ is
increased by less than 50%
, For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model
was 200 units and the total annual inventory (carrying and setup) cost was $600. The
inventory carrying cost per unit per year for this item is
$3.00
A product has demand of 4000 units per year. Ordering cost is $20 and holding cost is $4
per unit per year. The EOQ model is appropriate. The cost-minimizing solution for this
product will cost _______ per year in total annual inventory costs.
$800
Which of the following statements regarding the reorder point is TRUE?
a. The reorder point is that quantity that triggers an action to restock an item.
b. There is a reorder point even if lead time and demand during lead time are constant.
c. The reorder point is larger than d x L if safety stock is present.
d. The fixed-period model has no reorder point.
e. All of the above are true.
e. All of the above are true.
The EOQ model with quantity discounts attempts to determine
how many units should be ordered
An inventory decision rule states "when the inventory level goes down to 14 gearboxes, 100
gearboxes will be ordered." Which of the following statements is true?
a. One hundred is the reorder point, and 14 is the order quantity.
b. Fourteen is the reorder point, and 100 is the order quantity.
