Reference no: EM132795850
Problem 1: The type of spoilage which is considered controllable and can be avoided is called
a. Abnormal spoilage
b. Normal spoilage
c. Scrap
d. Waste
Problem 2: In inventory management, a decrease in the frequency of ordering will normally
a. Increase total carrying costs
b. Increase total ordering costs
c. Have no effect on total carrying costs
d. Have no effect on total ordering costs
Problem 3: Which of the following statement is false?
a. The cost of inventory itself, as well as any quantity discounts lost on inventory purchases, is directly reflected in the EOQ model.
b. A decrease in inventory order cost will decrease the EOQ
c. An increase in inventory carrying cost will decrease the EOQ
d. An increase in the variable cost of placing and receiving an order will increase the EOQ