Operation Research (2171901) MCQs

MCQs of Inventory Control

Showing 1 to 10 out of 36 Questions
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1.

If small orders are placed frequently (rather than placing large orders infrequently), then the total inventory cost

(a)

increases
(b)

reduces
(c)

either increases or reduces
(d)

 is minimized
Answer:

Option (c)

2.

If orders are placed with size determined by the EOQ, then the reorder costs component is

(a)

equal to the holding cost component
(b)

 greater than the holding cost component
(c)

 less than the holding cost component
(d)

 either greater than or less than the holding cost component
Answer:

Option (a)

3.

If EOQ is calculated, but an order is then placed which is smaller than this, will the variable cost:

(a)

 increase
(b)

decrease
(c)

either increase or decrease
(d)

no change
Answer:

Option (d)

4.

Which costs can vary with order quantity

(a)

unit cost only
(b)

reorder cost only
(c)

holding cost only
(d)

all of these
Answer:

Option (d)

5.

If we find a minimum on a total cost cun/e, with discounted unit cost, then the optimal order size is

(a)

at this valid minimum
(b)

 at or to the left of this minimum
(c)

 at or to the right of this minimum
(d)

anywhere
Answer:

Option (c)

6.

If we find a valid minimum on a total cost curve with increasing reorder cost, then the optimal order size is

(a)

at this valid minimum
(b)

at or to the left of this minimum
(c)

at or to the right of this minimum
(d)

anywhere
Answer:

Option (b)

7.

When compared to instantaneous replenishment, does a finite replenishment rate lead to

(a)

the same size batches
(b)

 larger batches
(c)

 smaller batches
(d)

either larger or smaller batches
Answer:

Option (c)

8.

If the total investment in stock is limited, then the best order quantity for each item will be

(a)

equal to the economic order quantity
(b)

greater than the EOQ
(c)

 less than the EOQ
(d)

either greater or less than the EOQ
Answer:

Option (c)

9.

If the unit cost rises, then optimal order quantity

(a)

 increases
(b)

decreases
(c)

either increase or decrease
(d)

none of these
Answer:

Option (b)

10.

The basic information required for an efficient control of inventory is to do with 

(a)

What items should be stocked? 
(b)

 When should an order be placed to replenish inventory?
(c)

How much should be ordered in each replenishment? 
(d)

 all of these
Answer:

Option (a)

Showing 1 to 10 out of 36 Questions
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