Management Notes

Reference Notes for Management

What is the primary purpose of the basic economic order quantity model shown below?

What is the primary purpose of the basic economic order quantity model shown below?

What is the primary purpose of the basic economic order quantity model shown below?

 Options:

A. to calculate the reorder point, so that replenishments take place at the proper time
B. to minimize the sum of carrying cost and holding cost
C. to maximize the customer service level
D. to minimize the sum of setup cost and holding cost
E. to calculate the optimum safety stock

The Correct Answer Is:

D. to minimize the sum of setup cost and holding cost

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An inventory decision rule states

An inventory decision rule states

An inventory decision rule states

 Options:

A. One hundred is the reorder point, and 14 is the order quantity.
B. Fourteen is the reorder point, and 100 is the order quantity.
C. The number 100 is a function of demand during lead time.
D. Fourteen is the safety stock, and 100 is the reorder point.
E. None of the above is true.

The Correct Answer Is:

B. Fourteen is the reorder point, and 100 is the order quantity.

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If a factory wants to cut its current lot size in half, by what proportion must setup cost change?

If a factory wants to cut its current lot size in half, by what proportion must setup cost change?

If a factory wants to cut its current lot size in half, by what proportion must setup cost change?

 Options:

A. Setup cost must be cut to one fourth its current value.
B. Setup cost must also be cut in half from its current value.
C. Setup cost must double from its current value.
D. Cannot be determined.
E. Setup cost must quadruple from its current value.

The Correct Answer Is:

A. Setup cost must be cut to one fourth its current value.

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Technical skills consist of

Technical skills consist of

Technical skills consist of

 Options:

A. the ability to think analytically
B. the ability to think analytically, to visualize an organization as a whole, and to understand how the parts work together
C. job-specific knowledge needed to perform well in a specialized field
D. the ability to work well in cooperation with other people to get things done
E. the ability to think in a logical manner

The Correct Answer Is:

C. job-specific knowledge needed to perform well in a specialized field

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