Question

A) C&A sells two kinds of eggs: brown and white. Brown eggs are 5% more expensive than white. Which of the following is the most appropriate way to measure how many eggs C&A has in inventory?

In dollars

In dozens

In inches

In ounces

B)Inventory turns and days-of-supply measure _______ items remain in __________.

how long, inventory

how valuable, inventory

how long, sales

how valuable, sales

C)Higher days of supply means _________ inventory. Higher turns means ______ inventory.

more, more

more, less

less, more

less, less

D)C&A is a car manufactures. If its annual inventory turns increases, what happens to its inventory level?

Remains the same

Increases

Decreases

Cannot be determined

E)Bread expires at the end of the day and cannot be sold. This is related to which kind of inventory cost?

Holding cost

Shortage/stock-out cost

Fixed/set up cost

None of the above

F)Which of the following is NOT an assumption of the EOQ model?

It is possible to receive a purchase discount if the order quantity is sufficiently large.

There is a fixed cost to submit each order that is independent of the amount ordered.

Demand occurs at a constant rate per unit of time

There is a cost to hold each unit of inventory per unit of time.

G)A firm evaluates its EOQ quantity to equal 180 cases but it chooses an order quantity of 200 cases. Relative to the order quantity of 180 cases, the order quantity of 200 cases has:

Higher ordering cost and higher holding cost

Higher (fixed) ordering cost and lower holding cost

Lower (fixed) ordering cost and higher holding cost

Lower (fixed) ordering cost and lower holding cost

Answer 1