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 receiving E 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 first 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 65 Dairy items fresh fruit and newspapers are items that A do not require safety stocks B cannot be ordered in large quantities C are subject to deterioration and spoilage D require that prices be lowered every two days E have minimal holding costs 66 Which of the following is least likely to be included in order costs A processing vendor invoices for payment B moving delivered goods to temporary storage C inspecting incoming goods for quantity D taking an inventory to determine how much is needed E temporary storage of delivered goods 67 In an A B C system the typical percentage of the number of items in inventory for A items is about A 10 B 30 C 50 D 70 E 90 68 In the A B C classification system items which account for fifteen percent of the total dollar volume for a majority of the inventory items would be classified as A A items B B items C C items D A items plus B items E B items plus C items 69 In the A B C classification system items which account for sixty percent of the total dollar volume for few inventory items would be classified as A A items B B items C C items D A items plus B items E B items plus C items 70 The purpose of cycle counting is to A count all the items in inventory B count bicycles and motorcycles in inventory C reduce discrepancies between inventory records and actual D reduce theft E count 10 of the items each month 71 The EOQ model is most relevant for which one of the following A ordering items with dependent demand B determination of safety stock C ordering perishable items D determining fixed interval order quantities E determining fixed order quantities 72 Which is not a true assumption in the EOQ model A Production rate is constant B Lead time doesn t vary C No more than 3 items are involved D Usage rate is constant E No quantity discounts 73 In a supermarket a vendor s restocking the shelves every Monday morning is an example of A safety stock replenishment B economic order quantities C reorder points D fixed order interval E blanket ordering 74 A cycle count program will usually require that A items be counted A daily B once a week C monthly D quarterly E more frequently than annually 75 A risk avoider would want safety stock A Less B More C The same D Zero E 50 76 In the basic EOQ model if annual demand doubles the effect on the EOQ is A It doubles B It is four times its previous amount C It is half its previous amount D It is about 70 percent of its previous amount E It increases by about 40 percent 77 In the basic EOQ model if lead time increases from five to 10 days the EOQ will A double B increase but not double C decrease by a factor of two D remain the same E none of the above 78 In the basic EOQ model an annual demand of 40 units an ordering cost of 5 and a holding cost of 1 per unit per year will result in an EOQ of A 20 B square root of 200 C 200 D 400 E none of these 79 In the basic EOQ model if D 60 per month S 12 and H 10 per unit per month EOQ is A 10 B 12 C 24 D 72 E 144 80 In the basic EOQ model if annual demand is 50 carrying cost is 2 and ordering cost is 15 EOQ is approximately A 11 B 20 C 24 D 28 E 375 81 Which of the following is not true for Economic Production Quantity model A Usage rate is constant B Production rate exceeds usage rate C Run size exceeds maximum inventory D There are no ordering or setup costs E Average inventory is one half maximum inventory 82 Given the same demand setup ordering costs and carrying costs the EOQ calculated using incremental replenishment will be if instantaneous replenishment was assumed A greater than the EOQ B equal to the EOQ C smaller than the EOQ D greater than or equal to the EOQ E smaller than or equal to the EOQ 83 The introduction of quantity discounts will cause the optimum order quantity to be A smaller B unchanged C greater D smaller or unchanged E unchanged or greater 84 A fill rate is the percentage of filled by stock on hand A Shipments B Demand C Inventory D Safety stock E Lead time 85 In the quantity discount model with carrying cost stated as a percentage of unit purchase price in order for the EOQ of the lowest curve to be optimum it must A have the lowest total cost B be in a feasible range C be to the left of the price break quantity for that price D have the largest quantity compared to other EOQ s E none of the above 86 Which one of the following is not generally a determinant of the reorder point A rate of demand B length of lead time C lead time variability D stockout risk E purchase cost 87 If no variations in demand or lead time exist the ROP will equal A the EOQ B expected usage during lead time C safety stock D the service level E the EOQ plus safety stock 88 If average demand for an inventory item is 200 units per day lead time is three days and safety stock is 100 units the reorder point is A 100 units B 200 units C 300 units D 600 units E 700 units 89 Which one of the following is implied by a lead time service level of 95 percent A Approximately 95 percent of demand during lead time will be satisfied B Approximately 95 percent of inventory will be used during lead time C The probability is 95 percent that demand during lead time will exactly equal the amount on hand at the beginning of lead time D The probability is 95 percent that demand during lead time will not exceed the amount on hand at the beginning of lead time E none of the above 90 Which one of the …