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Question: 5 which category of inventory holding costs would be much...

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5. Which category of inventory holding costs would be much higher than average for rapidly changing industries such as pesonal computers and cell phones? a Obsolescence b. Warehouse Leasing c. Labor handling 6. High stock-out costs relative to holding costs should lead to recommendations for larger orders a. Yes b. No 7. I dhe oruantity (ize) doubles, what happensto the mumber of onders placed per year? (hint: # of orders)T-Demand EOQ) д. Declines by more than 50% b, Declines by 50% C. Increases by 50% d. Does not change . Instead of following the EOQ prescription of 150 pieces/order, a company orders 200 pieces at a time. This action would typically result in: a. Higher total ordering cost, but lower total holding cost b. Lower total ordering cost, but higher total holding cost c. Lower total ordering cost and lower total holding cost d. Higher total ordering cost and higher total holding cost 9. The basic EOQ model is quite robust (works reasonably well in many scenarios) because: a. The flat bottomed total cost curve implies that straying away a little from the EOO number would not increase costs significantly b.It accounts for variable demand and variable lead time c. It is quite casy to account for holding and ordering costs d. The assumptions of the basic EOQ model are met reasonably well in mot businesses. Page 3 1/17/2019
In a basic BOQ setting, if a holding cost estimate was incorrectly increased by 10%, the EOQ would also increase by 10%. 10. a True b. False D- anqual demand in units, S-average cost of placing 1 order, H- average cost of bolding I unit of that item in inventory for 1 year What is likely to most immediately happen to the EO0 when working capital interest rates inctcase? 11. a EOQ will increase b. EOQ will decrease c. EOQ will not be affocted d. The need for establishing EOQ will be eliminated Afinn htībee卫ordering a certain itetn 600urisatatins The firm estimates that holding cost is $2 per unit per year, and that annual demand is 1800 units per year. The assumptions of the basic BOQ model are thought to apply For what value of ordering cost (cost of placing an order) would their ordering policy (600 units per order) be economically optimal? Where: D-annual demand in units S- cost of placing 1 order H-cost of holding 1 unit of that item in inventory for 1 year a. $2 per order b. $200 per year c $200 per order d none of the above is correct
Annual demand for the Ferrari laptop at Circuit Town is D-1000 units, Ordering cost (5)-5400 onder, each laptop costs $500 and holding costs (0 are 2% of the oostunit moth Answer the nextwo questions below, based on the above data Pick the closest figure from the anwe Where D annual demand in units s-cost of placing 1 order; H-cost of holding 1 unit of that item in inventoey for 1 yoa 13. Approximately how mach should be ordered in each order? a. 102 b. 98 e. 82 d. 820 TRO What is the total cost of the ordering policy compated in the question above? Use the EOQ figure from the question above (TO> # ofordersyr * S + Avg. Inventory * H). Round-up (for e.g.9 22 becomes 10) when computing the# of orders, figure. Average inventory (Beginning Inv+ Ending Inv)2 14. a. $97,980 b. $10,120 e. $55,000 d. $8,024 5. Crump Hotels is selective about its recruits. It gets many applicants and runs periodic screening programs for these month. After selection, the new employees are paid $1800 per month, but do not work until a full time position becomes open in the hotel. The screening program costs the hotel $22,000 per program, irrespective of the number of applicants in the program (minimum one applicant). About how many applicants should the hotel admit to a scrcening program applicants that must produce 5 approved fresh employees per in order to minimize total costs? b. 13 c. 32 d. Cannot say
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