Demand setup-ordering costs and holding costs

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Reference no: EM132138775

1. Given the same demand (D) setup/ordering costs (S) and holding costs (H) the order quantity for the basic EOQ model is:

a) smaller than the that of the EPQ model

b) larger than that of the EPQ model

c) the same as that of the EPQ model

2. Which of the following statements regarding knowledge diffusion is correct?

a. In a decentralized federation. knowledge is developed in national subsidiaries and diffused throughout the organization.

b. In a centralized hub, knowledge is developed and retained at the center.

c. In a coordinated federation, knowledge is developed at the center and transferred overseas units for local adaptation.

3. In basic EOQ model, lower unit holding cost will result in:

a) smaller order quantity

b) larger order quantity

c) higher reorder point

d) lower reorder point

Reference no: EM132138775

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