02 Jun Question 60. Which of the following is not one of the assumptions of the basic EOQ model?
Question
60. Which of the following is not one of the assumptions of the basic EOQ model?
A. Annual demand requirements are known and constant.
B. Lead time does not vary.
C. Each order is received in a single delivery.
D. Quantity discounts are available.
E. All of the above are necessary assumptions.
61. Which of the following interactions with vendors would potentially lead to inventory reductions?
A. reduce lead times
B. increase safety stock
C. less frequent purchases
D. larger batch quantities
E. longer order intervals
62. A non-linear cost related to order size is the cost of:
A. interest
B. insurance
C. taxes
D. receivingE. space
63. In a two-bin inventory system, the amount contained in the second bin is equal to the:
A. ROP
B. EOQ
C. amount in the ?rst bin
D. optimum stocking level
E. safety stock
64. When carrying costs are stated as a percentage of unit price, the minimum points on the total cost curves:
A. Line up
B. Equal zero
C. Do not line up
D. Cannot be calculated
E. Depend on the percentage assigned
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