1)The EOQ model is most relevant for which one of the following? ordering items

ID: 434194 • Letter: 1

Question

1)The EOQ model is most relevant for which one of the following?

ordering items with dependent demand models

determination of safety stock

ordering perishable items

determining optimal quantities for independent demand models

2)ABC analysis is based upon the principle that

all items in inventory must be monitored very closely

there are usually a few critical items (A items), and many items (C items) which are less critical

the safety stock (in terms of volume) should be higher for a items than for c items

d) an item is critical if its usage is high

3) The identification of parent items is called:

Paternity

Relationship tracking

Pegging

d.Master scheduling

4) ABC analysis divides on-hand inventory into three classes, generally based upon

item quality

unit price

annual dollar volume

none of the above

ordering items with dependent demand models

determination of safety stock

ordering perishable items

determining optimal quantities for independent demand models

1. d. determining optimal quantities for independent demand models

Economic order quantity is the optimal quantity of order needs to be placed for independent demand or in a single order.

2. b. there are usually a few critical items (A items), and many items (C items) which are less critical

The theory is to classify items based on their demand and requirement.

3. c. Pegging

4. c. annual dollar volume

This is the unit required multiplied by the price which gives the annual.dollar volume

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