1. The function of the economic order quantity (EOQ) model is to determine the o

Question

1. The function of the economic order quantity (EOQ) model is to determine the optinal order size that minimizes total inventory costs (ordering & carying costs A stock out occurs when demand exceeds supply during the lead tine In Materials Requirement Planning (MRP), the term "lot for lot meass you order rwice (a) True b) False 2. (a) True (b) Faise as much you need in a given period (a) True (b) Faise 4. The shortest operations time (SOTD method of scheduling results is the highest average flow time of all the jobs being scheduled. (a) True (b) False 5 The level of inventory at which a new order should be placed iskow, the (a) Service level (b) reorder point (c) replenishment quantity (d) Lead time 6. Dependent demand items are typically final products demanded by an extermal customer (a) True (b) False . If the Job Time Remaining is less than Time Till Delivery, the critical ratio (CR) will be (a) equal to 1.0 (b)equal to O.0 c) greater than 1.0 () less than 1.0 An inventory system controls the level of inventory by determining how much to order and when to order (a) True (b) False A service level of 95% means a. there is a 0.95 probability of meeting all demand there is a 0.95 probability of a stock out there is a 0.95 probability that supply will exceed demand there is a 0.95 probability that demand will be met during the lead time required for a particular job to be compieted from the start of the planning riod is known as the flow time of that job (b) False (a) True

Explanation / Answer

1:a: True

EOQ is all about optimising the order quantity based on demand and annual ordering cost

2:a: True

3:b: False

4: B False

5:b: Reorder point

6:b: False

Dependent demand are basically for component products

7:d Less than zero.

8:a: True

9: A

10:A

Flow time is all about beginning to end time of a process and is acumulative value of all process.

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