AppendixCIII
1) TheCEOQCmodelCisCaCmathematicalCtoolCforCdeterminingCtheCorderCquantityCthat:
A) maximizesCtheCcostsCofCorderingCandCholdingCinventory.
B) equalsCtheCcostsCofCorderingCandCholdingCinventory.
C) minimizesCtheCcostsCofCorderingCandCholdingCinventory. AllCChapters
D) hasCnoCeffectConCtheCcostsCofCorderingCandCholdingCinventor
y.
E) noneCofCtheseCanswersCareCcorrect
.
AnswersCIncluded
2) InventoryCdecisionsCinvolveCaCdelicateCbalanceCbetweenCwhichCofCtheCfollowingCclassesC
ofCcosts?
A) OrderingCcosts,CadvertisingCcosts,CandCshippingCcosts
B) AdvertisingCcosts,CholdingCcosts,CandCshortageCcosts
C) OrderingCcosts,CholdingCcosts,CandCshortageCcosts
D) OrderingCcosts,CshippingCcosts,CandCshortageCcosts
E) ShippingCcosts,CholdingCcosts,CandCshortageCcosts
3) WhichConeCofCtheCfollowingCisCtrueCofCaCjust-in-timeC(JIT)Csystem?
A) JITCsystemCusesCaC“pull”CapproachCtoCcontrollingCmanufacturing
B) InventoryCofCrawCmaterialsCandCpartsCareCkeptCasCaCbuffer
C) InventoryCofCpartiallyCcompletedCpartsCareCkeptCasCaCbuffer
D) FinishedCgoodsCareCkeptCasCaCbuffer
E) NoneCofCtheCanswersCareCcorrect
4) WhichConeCofCtheCfollowingCisCtrueCofCEconomicCOrderCQuantityC(EOQ)?
A) TheCEOQCapproachCtakesCtheCviewCthatCsomeCinventoryCisCnecessaryCinCorder
CtoCoptimizeCtheCorderCquantity
B) IsCcalculatesCasCtheCsquareCrootCofCtheCfollowing:C(2C×CannualCrequirementC×CcostC
perCorder)C÷CannualCholdingCcostCperCunit
C) TheCgraphicalCapproachCisConeCmethodCofCcalculatingCEOQ
D) ACmathematicalCtoolCforCdeterminingCtheCorderCquantityCthatCminimizesCtheCcostC
ofCorderingCandCholdingCinventory
E) AllCofCtheCanswersCareCcorrect
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,5) WhichCofCtheCfollowingCisCaCwayCthatCJITCefficienciesCareCachieved?
A) NegotiatingClong-termCsupplyCagreements
B) EliminatingCinspections
C) ReducingCtheCnumberCofCvendors
D) MakingClessCfrequentCpayments
E) AllCofCtheCanswersCareCcorrect
6) InventoryCholdingCcostsCtypicallyCinclude:
A) clericalCcostsCofCpurchase-orderCpreparation.
B) costsCofCdeterioration,Ctheft,CorCspoilage.
C) costsCassociatedCwithClostCsalesCtoCcustomers.
D) forgoneCinterestConCmoneyCtiedCupCinCinventory.
E) bothCcostsCofCdeterioration,Ctheft,CorCspoilageCandCforgoneCinterestConCmoneyCtiedCup
CinCinventory.
7) InventoryCholdingCcostsCwouldCtypicallyCincludeCallCofCtheCfollowingCexcept:
A) insurance.
B) theft.
C) transportation.
D) obsolescence.
E) warehouseCrent.
8) WhichCofCtheCfollowingCisCclassifiedCasCanCinventoryCshortageCcost?
A) PurchaseCorderCpreparation
B) ProductionCdisruption
C) LostCsalesCandClostCcustomers
D) Spoilage
E) BothCproductionCdisruptionCandClostCsalesCandClostCcustomers
9) AtCtheCeconomicCorderCquantity:
A) totalCannualCinventoryCcosts,CholdingCcosts,CandCorderingCcostsCareCallCminimized.
B) totalCannualCinventoryCcostsCandCholdingCcostsCareCminimized.
C) totalCannualCinventoryCcostsCareCminimized,CandCholdingCcostsCequalCorderingCcosts.
D) totalCannualCinventoryCcostsCareCminimized,CandCholdingCcostsCexceedCorderingCcosts.
E) totalCannualCinventoryCcostsCareCminimized,CandCorderingCcostsCexceedCholdingCcosts.
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,10) LangdonCEnterprisesCusesCanCeconomicCorderCquantityCmodelCandChasCdeterminedCanCopti
malCorderCsizeCofC2,200Cunits.CAnnualCdemandCisC44,000Cunits,CorderingCcostsCareC$60Cper
Corder,CandCholdingCcostsCareC$6CperCunit.CTheCcompany'sCannualCholdingCcostsCtotal:
A) $13,200.
B) $14,400.
C) $485,200.
D) $265,200.
E) noneCofCtheCanswersCisCcorrect.
11) LangdonCEnterprisesCusesCanCeconomicCorderCquantityCmodelCandChasCdeterminedCanCoptim
alCorderCsizeCofC500Cunits.CAnnualCdemandCisC10,000Cunits,CorderingCcostsCareC$50CperCorde
r,CandCholdingCcostsCareC$4CperCunit.CTheCcompany'sCannualCholdingCcostsCtotal:
A) $2,000.
B) $3,000.
C) $21,000.
D) $41,000.
E) noneCofCtheCanswersCisCcorrect.
12) ReflectionCGraphicsCusesCaCspecialCpurposeCpaperConC80%CofCitsCjobs.CTheCpaperCisCpurcha
sedCinC310-
sheetCpackagesCatCaCcostCofC$310CperCpackage.CManagementCestimatesCthatCtheCcostCofCpla
cingCandCreceivingCaCtypicalCorderCisC$36,CandCtheCannualCcostCofCcarryingCaCpackageCinCin
ventoryCisC$3.60.CReflectionCGraphicsCusesC4,700CpackagesCofCpaperCeachCyear.CProduction
CisCconstant,CandCtheCleadCtimeCtoCreceiveCanCorderCisCtwoCweek.
TheCeconomicCorderCquantityCisCapproximately:
Note:CRoundCyourCfinalCanswerCtoCtheCnearestCwholeCnumber.
A) 307Cpackages.
B) 4,018Cpackages.
C) 2,093Cpackages.
D) 1,636Cpackages.
E) 1,166Cpackages.
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, 13) ReflectionCGraphicsCusesCaCspecialCpurposeCpaperConC80%CofCitsCjobs.CTheCpaperCisCpurcha
sedCinC100-
sheetCpackagesCatCaCcostCofC$100CperCpackage.CManagementCestimatesCthatCtheCcostCofCpla
cingCandCreceivingCaCtypicalCorderCisC$15,CandCtheCannualCcostCofCcarryingCaCpackageCinCin
ventoryCisC$1.50.CReflectionCGraphicsCusesC2,600CpackagesCofCpaperCeachCyear.CProduction
CisCconstant,CandCtheCleadCtimeCtoCreceiveCanCorderCisConeCweek.
TheCeconomicCorderCquantityCisCapproximately:
A) 203Cpackages.
B) 225Cpackages.
C) 228Cpackages.
D) 565Cpackages.
E) 631Cpackages.
14) ReflectionCGraphicsCusesCaCspecialCpurposeCpaperConC80%CofCitsCjobs.CTheCpaperCisCpurcha
sedCinC350-
sheetCpackagesCatCaCcostCofC$350CperCpackage.CManagementCestimatesCthatCtheCcostCofCpla
cingCandCreceivingCaCtypicalCorderCisC$40,CandCtheCannualCcostCofCcarryingCaCpackageCinCin
ventoryCisC$4.00.CReflectionCGraphicsCusesC5,100CpackagesCofCpaperCeachCyear.CProduction
CisCconstant,CandCtheCleadCtimeCtoCreceiveCanCorderCisCthreeCweeks.
Note:CAssumeC52CweeksCinCaCyear.CDoCnotCroundCyourCintermediateCcalculations.CRou
ndCyourCfinalCanswerCtoCnearestCwholeCdollarCamount.
TheCreorderCpointCis:
A) 147Cpackages.
B) 1,440Cpackages.
C) 5,600Cpackages.
D) 350Cpackages.
E) 294Cpackages.
15) ReflectionCGraphicsCusesCaCspecialCpurposeCpaperConC80%CofCitsCjobs.CTheCpaperCisCpurcha
sedCinC100-
sheetCpackagesCatCaCcostCofC$100CperCpackage.CManagementCestimatesCthatCtheCcostCofCpla
cingCandCreceivingCaCtypicalCorderCisC$15,CandCtheCannualCcostCofCcarryingCaCpackageCinCin
ventoryCisC$1.50.CReflectionCGraphicsCusesC2,600CpackagesCofCpaperCeachCyear.CProduction
CisCconstant,CandCtheCleadCtimeCtoCreceiveCanCorderCisConeCweek.
TheCreorderCpointCis:
A) 25Cpackages.
B) 50Cpackages.
C) 100Cpackages.
D) 203Cpackages.
E) 225Cpackages.
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