Reference no: EM133446283

Questions

1. Facility location analysis considers the competitive imperative of a favorable business climate as indicated by the presence of other companies in the same industry.

True

False

2. If the cost to change from producing one product to producing another were zero, the lot size would be very small.

True

False

3. An inventory system is a set of policies and controls that monitors levels of inventory and determines what levels should be maintained, when stock should be replenished, and how large orders should be.

True

False

4. In inventory models, high holding costs tend to favor high inventory levels.

True

False

5. Which of the following is a fixed-order-quantity inventory model?

a. Economic order quantity model

b. Periodic replenishment mode

c. Cycle counting model

d. The ABC Model

6. Which of the following is not necessary to compute the order quantity using the fixed-time-period model with safety stock?

a. Forecast average daily demand

b. Inventory currently on hand

c. Ordering costs

d. Lead time in days