MQM 227 – Operations Management | 100 Exam Questions on EOQ, Reorder Points, ABC Classification, Inventory Models | Illinois State University

This document contains 100 multiple-choice questions with verified answers from Chapter 20 of MQM 227 – Operations Management at Illinois State University. The material focuses on essential inventory management techniques including the Economic Order Quantity (EOQ) model, fixed-order and fixed-time inventory systems, reorder point calculations, inventory cost components (holding, ordering, and purchasing), and safety stock strategies. Additional concepts covered include ABC classification (Pareto principle), assumptions of basic inventory models, demand variability, inventory tracking systems, and standard deviation usage in lead time analysis. Students will find detailed examples of how to calculate reorder points using average demand and lead time, as well as how to determine order quantities under different systems. This study tool is highly relevant for students in operations management, supply chain, logistics, and industrial engineering courses. It is especially valuable for those preparing for exams, certifications, or seeking to strengthen their understanding of inventory planning and control systems. Keywords: operations management, MQM 227, EOQ, reorder point, ABC classification, inventory costs, fixed-order quantity, fixed-time period, cycle counting, lead time, safety stock, inventory control, Pareto principle, average demand, holding cost, order quantity, stockouts, demand variability