## ABC analysis divides on-hand also inventory right into three classes based upon:

variety of systems on hand also.

You are watching: In the basic eoq model, if annual demand doubles, the effect on the eoq is:

unit price.
yearly demand also.
yearly dollar values.

## The distinction between the EOQ and EPQ models is:

the EPQ design does not need the presumption of well-known, consistent demand.
the EPQ version does not call for the presumption of instantaneous receipt.
the EOQ version does not need the presumption of constant, recognized lead time.
Tbelow is no difference in between the EOQ and EPQ models.

## The appropriate level of security stock is generally figured out by:

minimizing total inventory delivering costs.
selecting the level of security stock that assures a provided organization level.
minimizing meant stockout expenses.
transferring enough safety stock so as to eliminate all stockouts.

## Extra systems held in inventory to alleviate the opportunity of stockouts are called:

just-in-time inventory.
company levels.
safety stock.
reorder points.

## In an EOQ model, if the annual demand doubles, then the optimal order dimension will:

boost by 41.4%.
rise by 75%.
remajor the very same.
boost by 50%.

## If both lead time and also day-to-day demand also are consistent, the ROP is equal to:

expected demand minus safety and security stock.
safety and security stock.
supposed demand plus security stock.

## Which of the complying with statements is true?

At the optimal order quantity for the EOQ design, complete ordering expenses will certainly equal total transferring expenses.
According to ABC analysis, items that have actually high unit expenses are always classified as A items.
Quantity discounts are enabled in the EOQ design.
Reorder points suggest the moment between orders.

## When utilizing ABC evaluation, what is the objective of classifying items right into groups?

To recognize the complete number of items in inventory.
To recognize if an item has a greater dollar worth.
To establish the appropriate level of manage over inventory levels.
To establish the unit expenses of the items.

## In the EOQ version, the term Q*/D would certainly represent:

the moment in between orders.
maximum inventory.
complete moving price.
the number of orders.

## In the EPQ design, the term Q*<1 − d/p> would certainly represent:

maximum inventory.
full holding cost.
average inventory.
total setup expense.

## The EOQ or Q* is :

the optimal inventory level to have on hand.
the optimal time to place an order.
the optimal time in between orders.
the optimal order size to area when ordering.

## The holding cost CH for the basic EOQ model is a holding or transporting expense that is:

per week.
per day.
per year.
per order time duration.

## The demand D for the standard EOQ design is:

weekly demand also.
annual demand.
monthly demand also.
day-to-day demand.

## The variable d is the demand also in the reorder formula for the standard EOQ design and d is :

per month.
per year.
per order period.

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per day.