9. Which of these is NOT in the setup cost calculations? A. economic ordering cost B. Annual ordering cost C. annual demand D. cost per order

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Help with the following questions.

12. Which of the following is NOT an assumption
of the EOQ model?
A. Ordering cost is fixed
B. Annual demand is known
C. The order is received the instant it is made
D. The stock is used up in a random manner
13. If the daily demand of a company is 50 and they
have a lead time in days of 4, what is their
9. Which of these is NOT in the setup cost
reorder point?
calculations?
А. 200
A. economic ordering cost
В. 220
B. Annual ordering cost
С. 240
C. annual demand
D. 260
D. cost per order
14. Which of the following is an example of order
cost?
A. insurance
B. refrigeration
C. rent
D. transportation
15. Which of the following is NOT an assumption
of the BOQ model?
A. Inventory is replenished instantaneously
B. Ordering cost is constant
C. The stock is used up gradually
D. The annual demand is known
3
Transcribed Image Text:12. Which of the following is NOT an assumption of the EOQ model? A. Ordering cost is fixed B. Annual demand is known C. The order is received the instant it is made D. The stock is used up in a random manner 13. If the daily demand of a company is 50 and they have a lead time in days of 4, what is their 9. Which of these is NOT in the setup cost reorder point? calculations? А. 200 A. economic ordering cost В. 220 B. Annual ordering cost С. 240 C. annual demand D. 260 D. cost per order 14. Which of the following is an example of order cost? A. insurance B. refrigeration C. rent D. transportation 15. Which of the following is NOT an assumption of the BOQ model? A. Inventory is replenished instantaneously B. Ordering cost is constant C. The stock is used up gradually D. The annual demand is known 3
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