Question

1.The method for evaluating location alternatives which minimizes shipping costs between multiple sending and receiving locations is:

A. Cost volume analysis

B. Transportation model analysis

C. factor rating analysis

D.MODI analysis

2. Nearness to raw materials would be most important to a:

A. grocery store

B. tax preparation service

C. manufacturing company

D. post office

3. EOQ is an inventory control technique that minimizes the total of:

A. excess inventory

B. pilferage

C. holding cost and ordering cost

D. stock outs

Answer 1

1.

Correct answer is B. Transportation model analysis

The method for evaluating location alternatives which minimizes shipping costs between multiple sending and receiving locations is Transportation model analysis

2.

Correct answer is C. manufacturing company

Nearness to raw materials would be most important to a manufacturing company as it will reduce transportation cost

3.

Correct answer is C. holding cost and ordering cost

EOQ is an inventory control technique that minimizes the total of holding cost and ordering cost