In inventory management, which of the following will tend to increase the level of safety stock?
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5 .Which of the following would affect the optimal level of inventory?(1) Holding cost per unit of inventory(2) Current level of inventory(3) Cost of placing an order for inventory(4) Demand
A 1, 2 and 3 only B 2, 3 and 4 only C 1, 3 and 4 only D 1, 2 and 4 only
7 .Which of the following assumptions is associated with the economic order quantitymodel?
A The holding cost per unit will vary with quantity ordered B The cost of placing an order will vary with quantity ordered C Holding costs depend on the average level of inventory D The purchase cost per unit will vary based on quantity discounts
8 .
A 4.55 times B 5.61 times C 6.51 times D 6.81 times
9 .Which of the following statements about the economic order quantity (EOQ) and the reorder level (ROL) are true?
A The EQO determines the ROL B The ROL determines the EOQ C Both are influnced by demand D Both are influnced by lead time
10 .Which of the following is LEAST relevant to the economic order quantity model forinventory?
A Safety stock B Annual demand C Holding costs D Order costs
