Which of the following is true about the production order quantity (POQ) model?

ID: 348490 • Letter: W

Question

a. Production rate is greater than demand rate.

b. Optimal order quantity is greater than the maximum inventory level.

c. Usage (demand) rate is constant.

d. All of the above is true.

e. None of the above.

In the EOQ model, if EOQ increases from 10 to 15 units, the ROP value will:

a. double.

b. remain the same.

c. increase by 50%.

d. decrease by 50%.

e. none of the above.

a. Production rate is greater than demand rate.

b. Optimal order quantity is greater than the maximum inventory level.

c. Usage (demand) rate is constant.

d. All of the above is true.

e. None of the above.

1. Right option is none of them is true. As, assumtion is keep optimum production.

2. Reorder point will remin same. Only days to again oreder will jack up.

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