Operation Research (2171901) MCQs

MCQs of Inventory Control

Showing 31 to 36 out of 36 Questions
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31.

At EOQ

(a)

Annual purchase cost = Annual ordering cost
(b)

Annual ordering cost = Annual carrying cost
(c)

Annual carrying cost = annual shortage cost
(d)

Annual shortage cost = Annual purchase cost
Answer:

Option (b)

32.

If the shortage cost is infinity,

(a)

No shortages are allowed
(b)

No inventory carrying cost is allowed
(c)

Ordering cost is zero
(d)

Purchase cost = Carrying cost
Answer:

Option (b)

33.

The inventory maintained to meet unknown demand changes is known as

(a)

Pipeline inventory
(b)

Anticipatory inventory
(c)

De coupling inventory
(d)

Fluctuatory inventory
Answer:

Option (d)

34.

Which of the following inventory is maintained to meet expected demand fluctuations?

(a)

Fluctuatory Inventory
(b)

Buffer stock
(c)

De-coupling inventory
(d)

Anticipatory inventory
Answer:

Option (d)

35.

Which of the following increases with the quantity ordered per order?

(a)

Carrying cost
(b)

Ordering cost
(c)

Purchase cost,
(d)

Demand
Answer:

Option (a)

36.

The ordering cost per order and average unit carrying cost are constant, and demand suddenly falls by 75 % then EOQ will:

(a)

Decreases by 50%
(b)

Does not change
(c)

Increases by 50 %
(d)

Decreases by 40%
Answer:

Option (c)

Showing 31 to 36 out of 36 Questions
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