PrivTernescF11TQ72F2WRegarding the economic order quantity, which of the following is true?OA all of the options are trueOB. It minimizes inventory holding costsOC. It minimizes the number of orders required to meet demandOD. It minimizes the sum of inventory holding and ordering costs.OE. It minimizes inventory ordering costsA Moving to another question will save this response.#320F3EDODDOD$4F4R%5F5TMacBook AirA6F6Y◄◄&7F7U► 11*008F8AO

Introduction: EOQ or Economic Order Quantity is a measurement tool to determine the economic order…

Answered: Regarding the economic order quantity,…

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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If the ordering cost reduces by half, the economic order quantity reduces by Select one: O a. 29.3% O b. None of them O c. 25% O d. 70.7% e. 50%
A manufacturer produces umbrellas. The production rate is 500 per day. The monthly demand for umbrellas is 2100 (and so usage per day is 70). Setup cost is $60 and holding cost is $1 per umbrella per month. What is the economic production quantity? (Use the nearest whole number) OA. 775 OB. 541 OC. 835 OD. 620 OE. 894 OF. 693 O.G.502 OH.899
Which of the following statements is false? a. Ordering in smaller lot sizes lead to lower inventory holding costs. b. Seasonal inventory is stored to cater predictable surge in demand. c. Cycle inventory is the average amount of inventory used to satisfy demand between replenishments. d. Safety inventory is kept when the demand is less than supply.
44 Which of these statements about the production order quantity model is FALSE? Select one: a. The production order quantity model is appropriate when the assumptions of the basic EOQ model are met, except that receipt is noninstantaneous. b. Because receipt is noninstantaneous, some units are used immediately and not stored in inventory. c. All else equal, the smaller the ratio of demand rate to production rate, the larger is the production order quantity. d. Average inventory is less than one-half of the production order quantity. e. None of the above is false.
Salary paid to purchase manager will be considered as O a. Setup cost O b. Storage cost O c. Holding cost O d. Carrying cost
Inventory order is placed when O a. Only when projected or actual stocks on hand is below zero O b. None of these O c. Only when projected or actual on hand stocks are higher than the safety stock. O d. Only when projected or actual on hand stocks value is positive.
6-
With a normal demand and normal lead-time, increasing the order lead-time results in which of the following? Lower expected costs. Higher service levels. Higher stockout probability. All of the above.
Increases in order cost ________ the economic order quantity. Group of answer choices DecreaseHave no Effect increase
ABC analysis is based on the presumption that carefully controlling all items is necessary to produce important inventory savings. A True B False
Suppose you have a very critical part that is used in the production of your product (so critical that it is impossible to continue production unless it is present). For such a part which of the two inventory control systems could you prefer?: Fixed Order Quantity or Fixed Order Period. Why? Explain briefly
Answer on b) Sales price = 80 kr Purchase price = 30 kr 80 – 30 = 50 kr profit 20 magazines * 80 kr = 1.6000 kr which will maximize the profit over time. Still dont get the answer on question c)

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