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Which of the following statements regarding the economic order quantity ( EOQ ) is true? if materials handling costs were to drop, the inventory carry cost per unit of an item would decrease and the EOQ would also decrease. the EOQ model assumes a variable demand pattern. the EOQ model combines several different item orders to the same supplier. if an order quantity is larger than the EOQ, the annual holding (carry) cost for inventory exceeds the annual ordering cost. Consider a piecemeal replenishment situation where the production rate is 100 units per day, the demand (consumption) rate is 4 units per day, and the economic production lot size is 500 units. Which of the following statements is true? the average inventory per cycle is 250 units. the average inventory per cycle is greater than 250 units. the rate of buildup in inventory during the production cycle is less than 100 units per day. the rate of buildup in inventory during the production cycle is greater than, or equal to 400 units per day. Annual demand for a product is 1,600 units, and the holding cost is $2.00 per unit per year. The cost of setting up the production line is $25.00 . There are 200 working days per year. The production manager decided to produce 200 units each time she started production. If it takes her 4 days to produce the 200 units, what was her production rate? 80 units per day. 60 units per day. 50 units per day. 100 units per day. 40 units per day
This case study is designed to test your capacity to integrate a wide range of business knowledge and insights. Use whatever resources are at your disposal to answer the following questions.
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