1. In certain case, when the demand might be greater than the stock, then it is...

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Operations Management

1. In certain case, when the demand might be greater than thestock, then it is difficult to calculate
a. Cost of lost sales
b. Cost of placing an order
c. Cost of setting up a production unit
d. Cost of backorders
.
2. Often to achieve economies of scale while shipping theproducts, ___________________ type of inventory model is used
a. Placing multiple orders within a planning horizon
b. Waiting up to a pre-established inventory levels
c. P-system
d. Q-System
.
3. Which of the following is not an assumption of EOQ model?
a. Demand is deterministic
b. Replenishment is instantaneous
c. Constant lead times
d. Economies of scale
.
4. Ordering cost will not include
a. Loading and unloading cost
b. Cost of processing RFQ
c. Expense of purchase department
d. Cost of set-up change
.
5. If the demand becomes half and carrying cost increases threetime, the EOQ will
a. Increase by 40%
b. Will become half
c. Decrease by 40%
d. Will become double
6. Activity based costing is easy to calculate in a
a. Fixed layout
b. Job shop layout
c. Product layout
d. Process layout
.

Answer & Explanation Solved by verified expert

4.2 Ratings (695 Votes)

Answer 1 a Cost of lost sales Reason Lost sales happens when a buyer wants to buy a product and it is not available at that time because of shortage then buyer is forced to change its buying behaviour This alteration might cause buyer to purchase the product later time or not brought at all in the future This kind of loss can not be costed by the organization as it is purely based on consumer behavior after that moment Answer 2 d QSystem Reason In Q system model whenever the inventory See Answer

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