University:
Eastern Kentucky University
Course:
MGT 370 | Operations Management
Academic year:

2022
Views:

281

Pages:

3
Author:

opisivanetmi

1. Which of the following is not one of the assumptions of the basic EOQ model? A. Annual demand requirements are known and constant. B. Lead time does not vary. C. Each order is received in a single delivery. D. Quantity discounts are available. E. Ordering and holding costs have been estimated reasonably accurately. 2. In the A-B-C classification system, items which account for 15 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. 3. 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. 4. A fill rate is the percentage of _____ filled by stock on hand. A. shipmen ts B. dema nd C. inventor y D. safety stock E. lead time 5. Which one of the following is implied by an annual service level of 95 percent? A. Approximately 95 percent of demand during lead time will be satisfied. B. The probability is .95 that demand will exceed supply during lead time. C. The probability is .95 that demand will equal supply during lead time. D. The probability is .95 that demand will not exceed supply during lead time. E. Approximately 95 percent of all demand will actually be satisfied directly from on-hand inventory. 6. Which of the following is an input to aggregate planning? A. ending inventory B. demand forecasts for each period C. customer levels D. setup costs E. quantity discounts 7. Aggregate planners attempt to balance: A. demand and inventories. B. demand and costs. C. capacity and inventories. D. capacity and costs. E. capacity and demand. 8. In conducting aggregate operations planning, there are a number of required inputs. Which of the following inputs are considered external to the firm? A. Inventory levels and market demand B. Raw material availability and competitor's behavior C. Current workforce and economic conditions D. Current physical capacity and market demand E. Subcontractor capacity and inventory levels 9. Which of the following is not a basic option for altering the availability of capacity in a service environment? A. overtim e B. hiring/layo ff C. part time D. invent ory E. All of the choices are options. 10. Suppose that usage of cooking oil at Harry's Fish Fry is normally distributed with an average of 15 gallons/day and a standard deviation of two gallons/day. Harry has just fired the manager and taken over operating the restaurant himself. Harry has asked you to help him decide how to reorder cooking oil in order to achieve a service level which is seven times the risk of stockout (7/8) ( SL = 7/8 = 87.5 percent (Z = 1.15) ). Lead time is eight days. Assume that cooking oil can be ordered as needed. A. 12 0 B. 126. 50 C. 122.3 0 D. None of the above