Relationship between lead time and inventory turns

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Reference no: EM132163263

1. In the order up-to model, what is the relationship between lead time and inventory turns?

a) Higher lead time leads to higher turns.

b) Higher lead time leads to lower turns.

c) Higher lead time leads to higher turns only if the in-stock probability is greater than 50%

d) Higher lead time leads to lower turns only if the in-stock probability is greater than 50%

2. The software development life cycle (SDLC) methodology phase that comprises developing the preliminary and detailed configurations, including how the system will meet functional requirements is called:

a. Planning and Requirements Definition

b. Operations and Maintenance

c. Implementation

d. Design

3. For each of the following $1,000- par-value bonds, assuming annual interest payment and a 40% tax rate, calculate the after-tax cost to maturity using the approximation formula.

Bond Life Underwriting fee Discount (-) or premium (+) Coupon interest rate

A. 20 years $25 - $20 9%

B. 16 40 +10 10

C. 15 30 -15 12

D. 25 15 Par 9

E. 22 20 -60 11

4. Which is not main categories of cost relevant to aggregate operations planning?

A. Basic production costs

B. Costs associated with changes in productions rate

C. Inventory ordering costs

D. Backorder costs

E. Inventory holding costs

Reference no: EM132163263

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