Question 1

Suppose management decides it wants to offer a 95% service level. That is, Cooper Company is willing to experience a stock-out probability of 5% during the order cycle. How much safety stock should be carried?

Accepted Answer

A)  33 units
B)  35 units
C)  46 units
D)  25 unitsE) B) and D)
F) All of the above

Question 2

If average lead time went up from 10 to 15 days, what will happen to EOQ?

Accepted Answer

A)  Increase of 200 units
B)  Decrease of 200 units.
C)  No change in EOQ
D)  Increase of 100 unitsE) All of the above
F) B) and C)

Question 3

is the average inventory? (round up to the nearest whole number)

Accepted Answer

A)  1200 units
B)  283 units
C)  250 units
D)  275 unitsE) None of the above
F) B) and C)

Exam 7: Inventory

If average lead time went up from 10 to 15 days, what will happen to EOQ?

Correct Answer
verified

is the average inventory? (round up to the nearest whole number)

Correct Answer
verified

Suppose management decides it wants to offer a 95% service level. That is, Cooper Company is willing to experience a stock-out probability of 5% during the order cycle. How much safety stock should be carried?

Correct Answer
verified

Exam 7: Inventory

If average lead time went up from 10 to 15 days, what will happen to EOQ?

Correct AnswerverifiedShow Answer

is the average inventory? (round up to the nearest whole number)

Correct AnswerverifiedShow Answer

Suppose management decides it wants to offer a 95% service level. That is, Cooper Company is willing to experience a stock-out probability of 5% during the order cycle. How much safety stock should be carried?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified