OPSM 3830 - Ch. 13 - Inventory Management Exam Questions with Correct Answers Latest
Update 2025/2026
Which of the following statements about the fixed-order-interval model is/are true? - Answers -
The order point is fixed
- It requires higher levels of safety stock than a fixed-quantity model
It can produce savings in shipping costs
_____ _____ is a physical count of items in inventory used to reduce the discrepancies between
inventory records and the actual items on hand - Answers Cycle Count
Ordering cost - Answers the fixed cost of placing and receiving a single order
What triggers orders in a fixed-order-interval model? - Answers Time since last order
which of the following is correct regarding inventory monitoring under the fixed order inventory
model - Answers Only periodic checks of inventory requried
Which of the following statements about inventory control systems is/are NOT true? - Answers
Perpetual inventory systems are always able to accurately report inventory levels.
UPCs and point-of-sale systems do not work well together.
An advantage of periodic systems is the lack of safety stock required.
Which of the following statements about inventory control systems is/are true? - Answers -
Some businesses are moving towards using RFID tags to track inventory
-Orders in two-bin systems may not be placed at the right time.
Inventory is a _____ or _____ of goods - Answers Stock, Store
Which of the following statements about the economic production quantity is/are true? -
Answers Inventory trickles in as it is produced
Unlike the EOQ model, there are no ordering costs.
Formula for economic order quantity - Answers square root of 2DS/H
, Which of the following statements about the economic production quantity is/are NOT true? -
Answers The maximum inventory level is the same as the EPQ
The assumptions are the same as in the EOQ model
Which of the following statements about quantity discount models is/are true? - Answers There
are two possible cases for what the value of H, fixed or dependent on the purchase prices.
The optimal quantity may not be the same as the EOQ.
Total cost must include product cost to evaluate options.
Which of the following statements about quantity discount models is/are NOT true? - Answers If
H is fixed, the cost curves have different minimum points
If H is variable, the cost curves have the same minimum point
Place the steps for determining the optimal order quantity when H is constant and quantity
discounts are available in the correct order. - Answers 1. Compute the EOQ
2. Identify the price at which the EOQ is feasible
3. if the feasible point is not in the range, compute the total cost for all price points at or below
the feasible point
4. Select the point with the lowest cost
Place the steps for finding the EOQ in a quantity discount model with variable H in the correct
order. - Answers 1. Start with the lowest price
2. If the minimum point is feasible...
3. Otherwise, compare total costs...
4. The optimal point is the quantity that yields the lowest cost
which is the correct formula for the total annual cost in the eoq model - Answers (Q/2)H +
(D/Q)S
Formula for economic production quantity - Answers SqRt (2DS)/H * SqRt p/(p-u)
Update 2025/2026
Which of the following statements about the fixed-order-interval model is/are true? - Answers -
The order point is fixed
- It requires higher levels of safety stock than a fixed-quantity model
It can produce savings in shipping costs
_____ _____ is a physical count of items in inventory used to reduce the discrepancies between
inventory records and the actual items on hand - Answers Cycle Count
Ordering cost - Answers the fixed cost of placing and receiving a single order
What triggers orders in a fixed-order-interval model? - Answers Time since last order
which of the following is correct regarding inventory monitoring under the fixed order inventory
model - Answers Only periodic checks of inventory requried
Which of the following statements about inventory control systems is/are NOT true? - Answers
Perpetual inventory systems are always able to accurately report inventory levels.
UPCs and point-of-sale systems do not work well together.
An advantage of periodic systems is the lack of safety stock required.
Which of the following statements about inventory control systems is/are true? - Answers -
Some businesses are moving towards using RFID tags to track inventory
-Orders in two-bin systems may not be placed at the right time.
Inventory is a _____ or _____ of goods - Answers Stock, Store
Which of the following statements about the economic production quantity is/are true? -
Answers Inventory trickles in as it is produced
Unlike the EOQ model, there are no ordering costs.
Formula for economic order quantity - Answers square root of 2DS/H
, Which of the following statements about the economic production quantity is/are NOT true? -
Answers The maximum inventory level is the same as the EPQ
The assumptions are the same as in the EOQ model
Which of the following statements about quantity discount models is/are true? - Answers There
are two possible cases for what the value of H, fixed or dependent on the purchase prices.
The optimal quantity may not be the same as the EOQ.
Total cost must include product cost to evaluate options.
Which of the following statements about quantity discount models is/are NOT true? - Answers If
H is fixed, the cost curves have different minimum points
If H is variable, the cost curves have the same minimum point
Place the steps for determining the optimal order quantity when H is constant and quantity
discounts are available in the correct order. - Answers 1. Compute the EOQ
2. Identify the price at which the EOQ is feasible
3. if the feasible point is not in the range, compute the total cost for all price points at or below
the feasible point
4. Select the point with the lowest cost
Place the steps for finding the EOQ in a quantity discount model with variable H in the correct
order. - Answers 1. Start with the lowest price
2. If the minimum point is feasible...
3. Otherwise, compare total costs...
4. The optimal point is the quantity that yields the lowest cost
which is the correct formula for the total annual cost in the eoq model - Answers (Q/2)H +
(D/Q)S
Formula for economic production quantity - Answers SqRt (2DS)/H * SqRt p/(p-u)
