Quan Tri Ton Kho

Inventory Management
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1. One important use of inventories in manufactur- TRUE

ing is to decouple operations through the use of
work-in-process inventories.
2. The objective of inventory management is to mini- FALSE

mize the cost of holding inventory.
3. A retail store that carries twice as much inventory as FALSE

its competitor will provide twice the customer service
level.
4. The overall objective of inventory management is to TRUE

achieve satisfactory levels of customer service while
keeping inventory costs reasonable.
5. The two main concerns of inventory control relate to TRUE

the costs and the level of customer service.
6. To provide satisfactory levels of customer service TRUE

while keeping inventory costs within reasonable
bounds, two fundamental decisions must be made
about inventory: the timing and the size of orders.
7. In the EOQ formula, holding costs under 10 percent FALSE

are expressed as percentages, above 10 percent are
expressed as annual unit costs.
8. DVD recorders would be an example of indepen- TRUE

dent-demand items.
9. Reorder point models are primarily used for depen- FALSE

dent-demand items.
10. An example of inventory holding cost is the cost FALSE

of moving goods to temporary storage after receipt
from a supplier.
11. Decoupling operations applies to the railroad indus- FALSE

try.
1 / 28
12. Interest, insurance, and opportunity costs are all as- TRUE
sociated with holding costs.
13. The A-B-C approach involves classifying inventory FALSE

items by unit cost, with expensive items classified as
A items and low-cost items classified as C items.
14. An inventory buffer adds value and lowers cost in all FALSE
supply chains.
15. In the A-B-C approach, C items typically represent FALSE

about 15 percent of the number of items, but 60 per-
cent of the dollar usage
16. EOQ inventory models are basically concerned with FALSE

the timing of orders.
17. The average inventory level is inversely related to FALSE

order size.
18. The average inventory level and the number of orders TRUE
per year are inversely related: As one increases, the
other decreases.
19. The EOQ should be regarded as an approximate TRUE

quantity rather than an exact quantity. Thus, rounding
the calculated value is acceptable.
20. Carrying cost is a function of order size; the larger the TRUE
order, the higher the inventory carrying cost.
21. Understocking an inventory item is a sure sign of FALSE

inadequate inventory control.
22. Annual ordering cost is inversely related to order TRUE

size.
23. The total cost curve is relatively flat near the EOQ. TRUE
24. FALSE
2 / 28
Because price is not a factor in the EOQ formula,
quantity discounts will not affect EOQ calculations.
25. In the quantity discount model, if holding costs are FALSE

given as a percentage of unit price, a graph of the
total cost curves will have the same EOQ for each
curve.
26. In the quantity discount model, the optimum quantity FALSE

will always be found on the lowest total cost curve.
27. ROP models indicate to managers the time between FALSE

orders.
28. When to order can be calculated by the ROP and TRUE

expressed as a quantity.
29. The rate of demand is an important factor in deter- TRUE

mining the ROP
30. The inventory value of the supply chain exceeds the TRUE
inventory value of the organization's work-in-process
inventory.
31. Safety stock is held because we anticipate future FALSE

demand.
32. Variability in demand and/or lead time can be com- TRUE

pensated for by safety stock.
33. Solving quality problems can lead to lower inventory TRUE

levels
34. ROP models assume that demand during lead time is FALSE
composed of a series of dependent daily demands.
35. Profit margins tend to be inversely related to invento- TRUE

ry turns.
36. FALSE
3 / 28
In the fixed-order-interval model, the order size is the
same for each order.
37. The fixed-order-interval model requires a continuous FALSE

monitoring of inventory levels.
38. Discrete stocking levels are used when an organiza- FALSE

tion does not want visibility of inventory levels.
39. The fixed-order-interval model requires a larger TRUE

amount of safety stock than the ROP model for the
same risk of a stockout.
40. The single-period model can be very helpful in deter- FALSE

mining when to order
41. The single-period model can be very helpful in deter- TRUE

mining how much to order.
42. Monitoring inventory turns over time can be used as TRUE

a measure of performance
43. A single-period model would be used mainly by orga- FALSE

nizations going out of business
44. The basic EOQ model ignores the purchasing cost TRUE
45. When the item is offered for resale, shortage costs in TRUE
the single-period model can include a charge for loss
of customer goodwill.
46. In the single-period model, the service level is the TRUE

probability that demand will not exceed the stocking
level in any period.
47. A quantity discount will lower the reorder point. FALSE
48. It is critical that the exact quantity calculated in the FALSE

EOQ model be ordered.
4 / 28
49. Safety stock eliminates all stockouts FALSE
50. A stock or store of goods is called a(n): E. inventory.
51. Which of the following is typically the largest of all B. purchase cost
inventory costs?
52. Even though it is often the case that no cash outflows C. shortage costs
result when demand exceeds capacity, __________
can nevertheless be experienced in those circum-
stances
53. If there are shipping cost economies that result D. fixed-order-in-

from bundling orders for different items together, the terval
__________ model becomes a relatively more attrac-
tive option.
54. Average demand for a particular item is 1,200 units A. once a month
per year. It costs $100 to place an order for this item,
and it costs $24 to hold one unit of this item in inven-
tory for one year. If the fixed-order-interval model is
chosen in this instance, how often (on average) will
this item be ordered?
55. Weekly demand for a particular item averages 30 B. 93

units, with a standard deviation of 4. This item is
managed with a fixed-order-interval model. The order
interval is three weeks, and this item has a certain
lead time of one week. The desired service level is
97.5 percent. Assume that it is now time to place
another order, and there are 43 units on hand. How
many units should be ordered?
56. Which of the following is not one of the assumptions D. Quantity dis-
of the basic EOQ model? counts are avail-
able.
57. Which of the following interactions with vendors A. reduced lead

would potentially lead to inventory reductions? times
5 / 28
58. A nonlinear cost related to order size is the cost of: D. receiving.
59. In a two-bin inventory system, the amount contained A. ROP.

in the second bin is equal to the:
60. When carrying costs are stated as a percentage of C. do not line up.
unit price, the minimum points on the total cost
curves:
61. Dairy items, fresh fruit, and newspapers are items C. are subject to
that: deterioration and
spoilage.
62. Which of the following is least likely to be included in E. temporary stor-

order costs? age of delivered
goods
63. In an A-B-C system, the typical percentage of the A. 10.

number of items in inventory for A items is about:
64. In the A-B-C classification system, items which ac- C. C items.

count for 15 percent of the total dollar volume for a
majority of the inventory items would be classified as:
65. In the A-B-C classification system, items which ac- A. A items.

count for 60 percent of the total dollar volume for few
inventory items would be classified as:
66. The purpose of cycle counting is to: C. reduce discrep-

ancies between
inventory records
and actual quanti-
ties.
67. The EOQ model is most relevant for which one of the E. determining
following? fixed order quanti-
ties
68. Which is not a true assumption in the EOQ model?
6 / 28
C. No more than
three items are in-
volved.
69. In a supermarket, a vendor's restocking the shelves D. fixed order in-

every Monday morning is an example of: tervals.
70. A cycle count program will usually require that A E. more often than
items be counted: annually.
71. A risk avoider would want ______ safety stock. B. more
72. In the basic EOQ model, if annual demand doubles, E. It increases by

the effect on the EOQ is: about 40 percent.
73. In the basic EOQ model, if lead time increases from D. remain the
five to 10 days, the EOQ will: same.
74. In the basic EOQ model, an annual demand of 40 A. 20.

units, an ordering cost of $5, and a holding cost of
$1 per unit per year will result in an EOQ of:
75. In the basic EOQ model, if D = 60 per month, S = $12, B. 12.

and H = $10 per unit per month, EOQ is:
76. In the basic EOQ model, if annual demand is 50, D. 28.

carrying cost is $2, and ordering cost is $15, EOQ is
approximately:
77. Which of the following is not true for the economic D. There are no
production quantity model? ordering or setup
costs.
78. Given the same demand, setup/ordering costs, and A. greater than the
carrying costs, the EPQ calculated using incremental EOQ
replenishment will be ____________ if instantaneous
replenishment was assumed.
79. The introduction of quantity discounts will cause the E. unchanged or

optimum order quantity to be: greater.
7 / 28
80. A fill rate is the percentage of _____ filled by stock on B. demand
hand.
81. In the quantity discount model, with carrying cost B. be in a feasible

stated as a percentage of unit purchase price, in order range.
for the EOQ of the lowest curve to be optimum, it
must:
82. Which one of the following is not generally a determi- E. purchase cost
nant of the reorder point?
83. If no variations in demand or lead time exist, the ROP B. expected usage
will equal: during lead time.
84. If average demand for an inventory item is 200 units E. 700 units.
per day, lead time is three days, and safety stock is
100 units, the reorder point is:
85. Which one of the following is implied by a lead time D. The probability
service level of 95 percent? is .95 that demand
during lead time
will not exceed the
amount on hand
at the beginning of
lead time.
86. Which one of the following is implied by an annual E. Approximately

service level of 95 percent? 95 percent of all
demand will ac-
tually be satis-
fied directly from
on-hand inventory.
87. Daily usage is exactly 60 gallons per day. Lead time A. 60 times 2
is normally distributed with a mean of 10 days and
a standard deviation of 2 days. What is the standard
deviation of demand during lead time?
88. Lead time is exactly 20 days long. Daily demand is C. 2 times the
normally distributed with a mean of 10 gallons per square root of 20
8 / 28
day and a standard deviation of 2 gallons. What is the
standard deviation of demand during lead time?
89. All of the following are possible reasons for using the C. the required
fixed-order-interval model except: safety stock is low-
er than with an
EOQ/ROP model.
90. Which of these products would be most apt to involve C. fresh fish
the use of a single-period model?
91. In a single-period model, if shortage and excess C. .50.

costs are equal, then the optimum service level is:
92. In a single-period model, if shortage cost is four times B. 80

excess cost, then the optimum service level is ___
percent.
93. In the single-period model, if excess cost is double B. 67

the shortage cost, the approximate stockout risk, as-
suming an optimum service level, is ___ percent.
94. In a single-period inventory situation, the probabili- C. .7

ties that demand will be 1, 2, 3, or 4 units are .3, .3, .2,
and .2, respectively. If two units are stocked, what is
the probability of selling both of them?
95. The management of supply chain inventories focuses C. both internal

on: and external in-
ventories.
96. An operations strategy for inventory management B. decreasing lot

should work toward: sizes.
97. Cycle stock inventory is intended to deal with: D. expected de-

mand.
98. An operations strategy which recognizes high carry- C. greatly de-

ing costs and reduces ordering costs will result in: creased order
quantities.
9 / 28
99. The need for safety stocks can be reduced by an E. decreases lead
operations strategy which: time variability.
100. Inventory -inventory can be

stacks of money,
equipment prod-
ucts
-Largest asset
place on the bal-
ance sheet at any
given time.
-difficult convert
back into cash
-want to get inven-

tory down as far as
possible.
101. Supply Chain Inventory Models 1. Raw Materials

- 2. Manufacturing
Plant Inventory 3.
Retail Store Inven-
tory
102. Single Period Model Used when we are

making a one-time
purchase of an
item.
103. Fixed-order Period Model Used when we

want to maintain
an item "In-stock"
and when we re-
stock, a certain
number of units
must be ordered.
10 / 28
104. Fixed-Time Period Model Item is ordered at
certain intervals of
time.
105. Inventory The stock of any

item or resource
used in an organi-
zation.
-includes raw ma-
terials, finished
products, compe-
tent,
-manufacturing in-
ventory: refers to
items that con-
tribute to or be-
come part of a
firm's products
106. Inventory System The set of policies

and that controls
that that monitor
levels of inventory.
- determines what
levels should be
maintained, when
stock should be
replenished and
how large orders
should be.
107. Purpose of Inventory -Maintain inde-

pendence of oper-
ations
-to meet variation

in product demand
11 / 28
-Allow flexibility in
production sched-
uling
-to provide safe-

guard for variation
in raw material
-take advantage of
an economic order
size
108. Inventory Costs -Holding or carry-

ing costs
- Setup or produc-
tion change costs
-Ordering Costs
-Shortage Costs
109. independant demand The demand for

various items are
unrelated
-workstation pro-
duce many parts
unrelated but
meet external de-
mand.
110. Dependent Demand The need for any

one item is a di-
rect result of the
need for some oth-
er item.
12 / 28
-car requires four
wheels
111. Single Period Inventory Single Period in-

ventory
-one time pur-
chasing decision
vendor selling t
shirts
- balance invento-
ry
112. Multi-Period Inventory model -fixed order quan-

tity models
- Fixed time period
models
ex.monthly sales
call by sales reps
113. REFER TO NOTES FOR EQUATIONS
114. Single Period Model Applications -overbooking of

airline flights
-Ordering of cloth-
ing and other fash-
ion items
-One time order

for events - E.g., t
shirts for a concert
115. Multi-Period Models Fixed -order quan-

tity models
-Also called the
economic order
quantity, EOQ and
Q model
-event triggered
13 / 28
116. Fixed Time Period Models -Also Called the

periodic review
system, fixed or-
der interval sys-
tem and P-model
Refer to slide 21
117. personal appeals An influence tac-

tic in which the
requestor asks
for something
based on personal
friendship or loyal-
ty,
118. exchange tactic An influence tac-

tic in which the re-
questor offers a re-
ward in return for
performing a re-
quest,
119. apprising An influence tac-

tic in which the
requestor clearly
explains why per-
forming the re-
quest will benefit
the target person-
ally
120. Fixed Order Quantity models Demand for the

product is con-
stant and uniform
-lead time is con-

stant
14 / 28
-price per unit is
constant
-Inventory Holding
cost is based on
average invetory.
-ordering or set-
up costs are con-
stant
-all demands for

the product will be
satisfied
121. Safety Stock Amount of inven-

tory carried in ad-
dition toe expect-
ed demand.
-determined
based off of many
criteria.
-keep certain
number of weeks
in supply.
-Best approach is
to keep probability.
122. REFER TO SLIDES for Equations
123. Inventory Models with Price Breaks Price Varies with

the order size to
find the lowest
cost calculate the
order quantity for
each price and
15 / 28
see if the quantity
is feasible.
1. sort prices from

lowest to highest
and calcualte or-
der quantiity for
each price refer to
slide 35
124. Inventory Accuracy refers to how

well the inventory
records agree with
physical count
125. Cycle Counting the physical inven-

tory taking tech-
nique in which in-
ventory is count-
ed on a frequent
basis rather than
once or twice a
year.
126. Inventory Management The planning and

controlling of in-
ventories in or-
der to meet the
competitive priori-
ties of the organi-
zation
_ maximize supply
chain potential
_ getting the right
amount of invento-
ry is critical --> not
extra and not less
than what needed
= efficiency
16 / 28
127. Inventory Management is Used to Determine: 1) What items
should be ordered
and stored
2) When items
should be ordered
and stored
3) How much
should be ordered
and stored
128. Inventories A stock of ma-

terials used by
the firm to trans-
form to satisfy cus-
tomer demand or
to support the pro-
duction of ser-
vices or goods
129. Why have inventory? 1) Provides pro-

tection from un-
certainties in de-
mand and supply
2) Enables the
firm to achieve
economies of
scale
3) Preparing for
anticipated events
4) Materials must
move from place
to place
5) Acts as a buffer
between critical in-
terfaces within the
supply chain
6) Speed delivery
and improve the
firm's on-time
17 / 28
7) Reduce stock-
outs and back-
oders
130. Stockout An order that can-

not be satisfied,
resulting in a loss
of the sale
131. Backorder A customer or-

der that cannot
be filled when
promised or de-
manded but is
filled later
132. Inventories as an Investment Monies invested in

inventory are not
available for in-
vestment in oth-
er things --> rep-
resent a drain on
the cash flows of
an organization =
temporary mone-
tary investment
133. Too Much or Too Little Inventory _ Too much inven-

tory on hand re-
duces profitability
_ Too little in-
ventory on hand
creates shortages
in the supply
chain and ulti-
mately damages
customer confi-
dence.
Inventory man-
18 / 28
agement involves
trade-offs.
134. Pressure for Small Inventories Holding cost:

1) cost of capital
2) storage and
handling
3) taxes, insur-
ance and shrink-
age
135. Inventory Holding Cost The sum of the

cost of capital and
the variable costs
of keeping items
on hand, such as
storage and han-
dling, taxes, insur-
ance, and shrink-
age
136. Holding Cost and Value of Inventories Companies usual-

ly state an item's
holding cost per
period of time as a
percent of its value
_ typically ranges
from 15 to 35 per-
cent of its values
137. Average Annual Cost to Hold Inventory = Firm's holding

cost X Average
Value of Total In-
ventory
138. Example of Holding Cost and Value of Inventories Firm's holding

cost = 20%
Average value of
total inventory =
20 % of sales
19 / 28
Average annual
cost to hold in-
ventory = 4% <--
[0.20(0.20)] of to-
tal sales.
This cost is siz-

able in terms of
gross profit mar-
gins, which often
are less than 10
percent --> cre-
ate pressures for
small inventories
139. Cost of Capital Opportunity cost

of investing in an
asset relative to
the
expected return
on assets of simi-
lar risk
_ Inventory is an
asset
140. Storage and Handling Costs May be incurred

when a firm rents
space on ei-
ther a long- or
short-term basic
<-- inventory takes
up space and
must be move in
and out of storage
_ inventory hold-
ing cost is in-
curred when a firm
could use storage
space productive-
20 / 28
ly in some other
way
141. Taxes and Insurance More taxes are

paid if end-of-year
inventories are
high, and the cost
of insuring the in-
ventories increas-
es
142. 3 Types of Shrinkage 1) Pilferage = theft

of inventory by
customers or em-
ployees
2) Obsolescence
= inventory cannot
be
inventory used or
sold at full val-
ue, owing to mod-
el changes, engi-
neering modifica-
tions, or unexpect-
edly
low demand
3) Deterioration
*not important
slide
143. Pressure for Large Inventories 1) customer ser-

vice = stockout
and backorder
2) ordering cost
3) setup cost
4) labor and equip-
ment utilization
5) transportation
cost
21 / 28
6) payments to
suppliers
144. Ordering Cost The cost of

preparing a pur-
chase order for a
supplier or a pro-
duction order for
manufacturing.
145. Setup Cost The cost involved

in changing over a
machine or work-
space to produce
a different item
146. 3 Types of Inventory Based on Usefulness 1) Raw materials

2)
Work-in-process
3) Finished goods
147. Raw Materials The inventories

needed for the
production of ser-
vices or goods
148. Work-in-Process Items, such as

components or
assemblies, need-
ed to produce a
final product in
manufacturing or
service opera-
tions.
149. Finished Goods Manufacturing

plants,
warehouses, and
retail outlets are
the items
22 / 28
sold to the firm's
customers
_ finished goods
of one firm may
actually be the raw
materials for
another
150. 4 Types of Inventory Based on How It was Created 1) cycle

2) safety stock
3) anticipation
4) pipeline
151. Cycle Inventory Inventory that

results from
the replenishment
process of a fixed
order quantity
_ the portion of to-
tal inventory that
varies directly with
lot size
_ the greater the
time between or-
ders --> larger or-
der size
_ lot sizing
152. Lot Sizing The determination

of how frequently
and in what quan-
tity to order fre-
quently
153. Average Cycle Inventory Q = lot size; quan-

tity at maximum
0 = quantity at
minimum
23 / 28
154. Advantage for Cycle Inventory Good for when de-
mand rate is con-
stant and uniform
_ provide a good
estimate when de-
mand rates are
not constnats
155. Safety Stock Extra stock held

due to uncertain-
ties in demand or
supply
_ increases with
higher variation in
demand or supply
_ should be de-
termined by cus-
tomer service lev-
el goals
156. Safety Stock Advantage _ avoid customer

service problems
_ avoid hidden
costs of unavail-
able components
_ avoid suppliers
mishaps
--> ensures oper-
ations are not dis-
rupted
157. Anticipation Stock Items stocked in

anticipation of a
known event
_ can be seasonal
stock
_ absorbed un-
even rates of de-
mand
24 / 28
158. Pipeline Inventory Items that are en-
route from one lo-
cation to another =
in-transit inventory
_ considered part
of on-hand inven-
tory, even though it
is not available
159. Pipeline Inventory Equation _ DL , which is

the average de-
mand for the item
per period
_ (d ) multiplied by
the number of pe-
riods in the item's
lead time (L) to
move between the
two points
160. Pipeline vs. Lot Size Assumes that both

d and L are con-
stants and that L is
not affected by the
order
or lot size, Q
_ Changing an
item's lot size
does not direct-
ly affect the aver-
age level of the
pipeline inventory.
_ Nonetheless,
the lot size can
indirectly affect
pipeline inventory
if it is related to
the lead time. -->
25 / 28
pipeline inventory
will change de-
pending on the re-
lationship of L to
Q.
161. Inventory Levels Illustration
162. ABC Analysis The process of

dividing SKUs
into three classes
(A,B,C) according
to their dollar us-
age so that man-
agers can focus
on items that have
the highest dollar
value
163. Stock-keeping Unit = SKU

An individual item
or product that
has an identifying
code and is held
in inventory some-
where along the
supply chain
164. Class A SKUs 20% of SKU but

80% of dollar us-
age
_ need to main-
tain high inventory
turnover --> more
control
26 / 28
165. Class B SKUs 30% SKU but only
15% dollar usage
_ less frequent
monitoring
166. Class C SKUs 50% SKU but only

5% dollar usage
_ looser control
_ holding cost low
--> can hold a lot
more --> larger lot
size
167. Economic Order Quantity = EOQ

help determine lot
size that mini-
mizes total annu-
al inventory hold-
ing and ordering
cost
168. EOQ Manages Cost Tradeoffs
169. EOQ Equation
170. EOQ Cost Break Down
171. Safety Stock in a EOQ
27 / 28
172. 2 Methods of Keeping Track of Inventory 1) Continuous re-

view (Q) System
2) Periodic Review
System (P)
173. Sensitivity Analysis of EOQ
28 / 28

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Inventory Management

HÍc trñc tuy¿n t¡i https://quizlet.com/_989iad

1. One important use of inventories in manufactur- TRUE

2. The objective of inventory management is to mini- FALSE

3. A retail store that carries twice as much inventory as FALSE

4. The overall objective of inventory management is to TRUE

5. The two main concerns of inventory control relate to TRUE

6. To provide satisfactory levels of customer service TRUE

7. In the EOQ formula, holding costs under 10 percent FALSE

8. DVD recorders would be an example of indepen- TRUE

9. Reorder point models are primarily used for depen- FALSE

10. An example of inventory holding cost is the cost FALSE

11. Decoupling operations applies to the railroad indus- FALSE

13. The A-B-C approach involves classifying inventory FALSE

15. In the A-B-C approach, C items typically represent FALSE

16. EOQ inventory models are basically concerned with FALSE

17. The average inventory level is inversely related to FALSE

19. The EOQ should be regarded as an approximate TRUE

21. Understocking an inventory item is a sure sign of FALSE

22. Annual ordering cost is inversely related to order TRUE

25. In the quantity discount model, if holding costs are FALSE

26. In the quantity discount model, the optimum quantity FALSE

27. ROP models indicate to managers the time between FALSE

28. When to order can be calculated by the ROP and TRUE

29. The rate of demand is an important factor in deter- TRUE

31. Safety stock is held because we anticipate future FALSE

32. Variability in demand and/or lead time can be com- TRUE

33. Solving quality problems can lead to lower inventory TRUE

35. Profit margins tend to be inversely related to invento- TRUE

37. The fixed-order-interval model requires a continuous FALSE

38. Discrete stocking levels are used when an organiza- FALSE

39. The fixed-order-interval model requires a larger TRUE

40. The single-period model can be very helpful in deter- FALSE

41. The single-period model can be very helpful in deter- TRUE

42. Monitoring inventory turns over time can be used as TRUE

43. A single-period model would be used mainly by orga- FALSE

46. In the single-period model, the service level is the TRUE

47. A quantity discount will lower the reorder point. FALSE

48. It is critical that the exact quantity calculated in the FALSE

50. A stock or store of goods is called a(n): E. inventory.

53. If there are shipping cost economies that result D. fixed-order-in-

55. Weekly demand for a particular item averages 30 B. 93

57. Which of the following interactions with vendors A. reduced lead

59. In a two-bin inventory system, the amount contained A. ROP.

62. Which of the following is least likely to be included in E. temporary stor-

63. In an A-B-C system, the typical percentage of the A. 10.

64. In the A-B-C classification system, items which ac- C. C items.

65. In the A-B-C classification system, items which ac- A. A items.

66. The purpose of cycle counting is to: C. reduce discrep-

68. Which is not a true assumption in the EOQ model?

69. In a supermarket, a vendor's restocking the shelves D. fixed order in-

71. A risk avoider would want ______ safety stock. B. more

72. In the basic EOQ model, if annual demand doubles, E. It increases by

74. In the basic EOQ model, an annual demand of 40 A. 20.

75. In the basic EOQ model, if D = 60 per month, S = $12, B. 12.

76. In the basic EOQ model, if annual demand is 50, D. 28.

79. The introduction of quantity discounts will cause the E. unchanged or

81. In the quantity discount model, with carrying cost B. be in a feasible

86. Which one of the following is implied by an annual E. Approximately

91. In a single-period model, if shortage and excess C. .50.

92. In a single-period model, if shortage cost is four times B. 80

93. In the single-period model, if excess cost is double B. 67

94. In a single-period inventory situation, the probabili- C. .7

95. The management of supply chain inventories focuses C. both internal