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    IM EOQ and JIT PDF

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    inventory mgt, Economic order quantity, Just in time Problems answers

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    IM EOQ and JIT PDF

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    Rakib Ibn Rafiq
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    inventory mgt, Economic order quantity, Just in time Problems answers

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    IM EOQ and JIT(1) pdf

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    inventory mgt, Economic order quantity, Just in time Problems answers

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    2 views3 pages

    IM EOQ and JIT PDF

    Uploaded by

    Rakib Ibn Rafiq
    inventory mgt, Economic order quantity, Just in time Problems answers

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 3

    Inventory EOQ and JIT

    Multiple Choice
    Identify the choice that best completes the statement or answers the question.

    ____ 1. The identification and elimination of activities that fail to add value refers to:
    A. external failures
    B. activity reduction
    C. internal failures
    D. activity elimination
    ____ 2. The process of choosing among different sets of activities caused by competing strategies refers to:
    A. activity drivers
    B. activity inputs
    C. activity outputs
    D. activity selection
    ____ 3. Carter Limited orders 250 units at a time, and places 15 orders per year. Total ordering cost is $1,600 and
    total carrying cost is $1,250. Which of the following statements is true?
    A. The economic order quantity (EOQ) is 250.
    B. The economic order quantity (EOQ) is more than 250.
    C. The economic order quantity (EOQ) is less than 250.
    D. Total inventory-related cost is lower than it would be at the economic order quantity
    (EOQ).
    E. None of these.
    ____ 4. Carter Limited orders 250 units at a time, and places 15 orders per year. Total ordering cost is $1,100 and
    total carrying cost is $1,750. Which of the following statements is true?
    A. The economic order quantity (EOQ) is 250.
    B. The economic order quantity (EOQ) is more than 250.
    C. The economic order quantity (EOQ) is less than 250.
    D. Total inventory-related cost is lower than it would be at the economic order quantity
    (EOQ).
    E. None of these.
    ____ 5. Carter Limited orders 250 units at a time, and places 15 orders per year. Total ordering cost is $1,100 and
    total carrying cost is $1,100. Which of the following statements is true?
    A. The economic order quantity (EOQ) is 250.
    B. The economic order quantity (EOQ) is more than 250.
    C. The economic order quantity (EOQ) is less than 250.
    D. Total inventory-related cost is lower than it would be at the economic order quantity
    (EOQ).
    E. None of these.
    ____ 6. When the economic order quantity (EOQ) model is applied to units produced within a company, ordering
    costs become:
    A. setup costs
    B. stock-out costs
    C. carrying costs
    D. safety-stock costs
    E. production costs
    ____ 7. Under a JIT system:
    A. customer demand pulls units through the production line
    B. safety stock is set at relatively high levels
    C. stock-outs are never a problem
    D. inventory levels are set at 10% of total production levels
    E. production is set at a level to maximise factory output
    ____ 8. JIT responds to the problems traditionally solved by carrying inventories by:
    A. ensuring that sufficient inventory is on hand to prevent stockouts
    B. purchasing extra materials when price discounts are offered
    C. negotiating long-term contracts with supplier to lock in low prices
    D. selecting an inventory level that minimises the total of ordering and carrying costs
    E. choosing a wide number of suppliers to increase the chance of receiving quantity discounts

    Martin Limited uses 625 units of a part each year. The cost of placing one order is $8; the cost of carrying
    one unit in inventory for a year is $4.

    ____ 9. Martin has decided to begin ordering 40 units at a time. What is the average annual carrying cost of
    Martin’s new policy?
    A. $80
    B. $60
    C. $160
    D. $4
    E. $90
    ____ 10. Martin has decided to begin ordering 40 units at a time. What is the average annual ordering cost of
    Martin’s new policy?
    A. $190
    B. $150
    C. $125
    D. $100
    E. $145
    ____ 11. What is the EOQ for Martin?
    A. 100
    B. 50
    C. 45
    D. 30
    E. 20
    ____ 12. Kaizen costing involves:
    A. changing the standards frequently.
    B. changing management.
    C. outsourcing processes.
    D. major ad campaigns.
    ____ 13. Which of the following is not true about kaizen standards?
    A. Kaizen standards are the standards used for continuous improvement.
    B. Kaizen standards are a currently attainable standard that reflects planned improvement.
    C. Kaizen standards are constantly changing.
    D. Kaizen standards are the standards used in traditional costing systems.
    Inventory EOQ and JIT
    Answer Section

    MULTIPLE CHOICE

    1. ANS: D PTS: 1 DIF: Easy


    2. ANS: D PTS: 1 DIF: Easy
    3. ANS: B PTS: 1 DIF: Moderate
    4. ANS: C PTS: 1 DIF: Moderate
    5. ANS: A PTS: 1 DIF: Moderate
    6. ANS: A PTS: 1 DIF: Easy
    7. ANS: A PTS: 1 DIF: Easy
    8. ANS: C PTS: 1 DIF: Easy
    9. ANS: A PTS: 1 DIF: Easy
    10. ANS: C PTS: 1 DIF: Easy
    11. ANS: B PTS: 1 DIF: Easy
    12. ANS: A PTS: 1 DIF: Moderate
    13. ANS: D PTS: 1 DIF: Moderate

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