16   Which of the following is the symbol used in the textbook for the cost of placing an order in the fixed-order-quantity inventory model? Select one: a. C b. S c. TC d. H e. Q

The following statements refer to the Economic Order Quantity (EOQ) model. Which of the following are true? I. The EOQ is found by minimizing the total demand function. II. Total annual purchasing costs affects the EOQ. III. The EOQ model takes the timing of reordering into account.

Bakery A sells bread for $2 per loaf that costs $0.50 per loaf to make. Bakery A gives an 80% discount for its bread at the end of the day. Demand for the bread is normally distributed with a mean of 300 and a standard deviation of 30. What order quantity maximizes expected profit for Bakery A? (use the normal distribution table posted on Canvas and round up to the nearest integer)

16 Brooke Army Medical Center dispenses 390,000 bottles of brand name pharmaceutical annually. The optimal safety stock (which is on hand initially) is 1,000 bottles. Each bottle costs the center $10, inventory carrying costs are 30%, and the cost of placing an order with its supplier is $175. I What is the economic order quantity? Format is x,xxx (number only) What is the maximum inventory for this medication? Format is x,xxx How often must the center order (in days)? Format is xx days or x days How many orders of this pharmaceutical will need to be placed each year? Format is x or xx (number only)

44 Which of these statements about the production order quantity model is FALSE? Select one: a. The production order quantity model is appropriate when the assumptions of the basic EOQ model are met, except that receipt is noninstantaneous. b. Because receipt is noninstantaneous, some units are used immediately and not stored in inventory. c. All else equal, the smaller the ratio of demand rate to production rate, the larger is the production order quantity. d. Average inventory is less than one-half of the production order quantity. e. None of the above is false.

3.  Skinner’s Fish Market buys fresh Boston bluefish daily for $4.20 per pound and sells it for $6 per pound. At the end of each business day, any remaining bluefish is sold to a producer of cat food for $3 per pound. Daily demand can be approximated by a normal distribution with a mean of 64 pounds and a standard deviation of 11 pounds. What is the optimal order quantity (stocking level)? Round your answer to 2 decimal places.  Answer:_______

Using the fixed-order-quantity model, which of the following is the total ordering cost of inventory given an annual demand of 25,000 units, a cost per order of $80, and a holding cost per unit per year of $16?

With a normal demand and normal lead-time, increasing the order lead-time results in which of the following? Lower expected costs. Higher service levels. Higher stockout probability. All of the above.

Among the following multi-period inventory models, which one has the highest probability of stockout? A. Fixed Order Quantity with Safety Stock B. Fixed Time Period Model C. Fixed Order Quantity D. Both Fixed Order Quantity & Fixed Order Quantity with Safety Stock

A health and nutrition store stocks a multivitamin with an annual demand of 1,000 bottles has  Co = $26.50 and Ch = $7. The demand exhibits some variability such that the lead-time demand follows a normal probability distribution with ? = 25 and ? = 5. (a) What is the recommended order quantity? (Round your answer to the nearest integer.):________   (b) What are the reorder point and safety stock if the store desires at most a 6% probability of stock-out on any given order cycle? (Round your answers to the nearest integer.) reorder point:________ safety stock:________ (c) If a manager sets the reorder point at 30, what is the probability of a stock-out on any given order cycle? (Round your answer to four decimal places.):________   How many times would you expect a stock-out during the year if this reorder point were used? (Round your answer to the nearest integer.):________