In a two-bin inventory system, the amount contained in the second bin is equal to the

In a two-bin inventory system, the amount contained in the second bin is equal to the

1

In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

All reorder-point models assume constant lead.time.
In a two-bin inventory system, the amount contained in the second bin is equal to the
A)
In a two-bin inventory system, the amount contained in the second bin is equal to the
True
In a two-bin inventory system, the amount contained in the second bin is equal to the
B)
In a two-bin inventory system, the amount contained in the second bin is equal to the
False
In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

2

In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

If the production rate in an economic production lot size model is very much larger than the consumption rate, the results are practically the same for economic production lot size and EOQ.
In a two-bin inventory system, the amount contained in the second bin is equal to the
A)
In a two-bin inventory system, the amount contained in the second bin is equal to the
True
In a two-bin inventory system, the amount contained in the second bin is equal to the
B)
In a two-bin inventory system, the amount contained in the second bin is equal to the
False
In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

3

In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

With the quantity-discount model, an order level might not be at a minimum point of a total cost curve.
In a two-bin inventory system, the amount contained in the second bin is equal to the
A)
In a two-bin inventory system, the amount contained in the second bin is equal to the
True
In a two-bin inventory system, the amount contained in the second bin is equal to the
B)
In a two-bin inventory system, the amount contained in the second bin is equal to the
False
In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

4

In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

Moving goods to temporary storage is an example of a holding cost.
In a two-bin inventory system, the amount contained in the second bin is equal to the
A)
In a two-bin inventory system, the amount contained in the second bin is equal to the
True
In a two-bin inventory system, the amount contained in the second bin is equal to the
B)
In a two-bin inventory system, the amount contained in the second bin is equal to the
False
In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

5

In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

Setup cost is analogous to ordering cost in EOQ models.
In a two-bin inventory system, the amount contained in the second bin is equal to the
A)
In a two-bin inventory system, the amount contained in the second bin is equal to the
True
In a two-bin inventory system, the amount contained in the second bin is equal to the
B)
In a two-bin inventory system, the amount contained in the second bin is equal to the
False
In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

6

In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

In a reorder model the daily demand rate is normally distributed with a mean of 50 units and a standard deviation of 5 units. The lead time is 9 days, Q = 500 units, and the leadtime service level (LTSL) is 90%. What are approximate values for SS and ROP?
In a two-bin inventory system, the amount contained in the second bin is equal to the
A)
In a two-bin inventory system, the amount contained in the second bin is equal to the
19, 69
In a two-bin inventory system, the amount contained in the second bin is equal to the
B)
In a two-bin inventory system, the amount contained in the second bin is equal to the
4, 69
In a two-bin inventory system, the amount contained in the second bin is equal to the
C)
In a two-bin inventory system, the amount contained in the second bin is equal to the
6, 469
In a two-bin inventory system, the amount contained in the second bin is equal to the
D)
In a two-bin inventory system, the amount contained in the second bin is equal to the
19, 469
In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

7

In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

If both the lead time and daily demand are constant, the ROP is equal to:
In a two-bin inventory system, the amount contained in the second bin is equal to the
A)
In a two-bin inventory system, the amount contained in the second bin is equal to the
Safety stock
In a two-bin inventory system, the amount contained in the second bin is equal to the
B)
In a two-bin inventory system, the amount contained in the second bin is equal to the
Expected demand minus safety stock.
In a two-bin inventory system, the amount contained in the second bin is equal to the
C)
In a two-bin inventory system, the amount contained in the second bin is equal to the
Expected demand plus safety stock.
In a two-bin inventory system, the amount contained in the second bin is equal to the
D)
In a two-bin inventory system, the amount contained in the second bin is equal to the
Daily demand times lead time.
In a two-bin inventory system, the amount contained in the second bin is equal to the
E)
In a two-bin inventory system, the amount contained in the second bin is equal to the
None of these.
In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

8

In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

Which inventory model does not provide an order quantity?
In a two-bin inventory system, the amount contained in the second bin is equal to the
A)
In a two-bin inventory system, the amount contained in the second bin is equal to the
EOQ.
In a two-bin inventory system, the amount contained in the second bin is equal to the
B)
In a two-bin inventory system, the amount contained in the second bin is equal to the
ROP
In a two-bin inventory system, the amount contained in the second bin is equal to the
C)
In a two-bin inventory system, the amount contained in the second bin is equal to the
Single-period.
In a two-bin inventory system, the amount contained in the second bin is equal to the
D)
In a two-bin inventory system, the amount contained in the second bin is equal to the
Fixed-interval
In a two-bin inventory system, the amount contained in the second bin is equal to the
E)
In a two-bin inventory system, the amount contained in the second bin is equal to the
Quantity discount
In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

9

In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

Which one of the following is not a requirement for effective inventory management?
In a two-bin inventory system, the amount contained in the second bin is equal to the
A)
In a two-bin inventory system, the amount contained in the second bin is equal to the
A system to keep track of inventory on hand
In a two-bin inventory system, the amount contained in the second bin is equal to the
B)
In a two-bin inventory system, the amount contained in the second bin is equal to the
A classification system for inventory items
In a two-bin inventory system, the amount contained in the second bin is equal to the
C)
In a two-bin inventory system, the amount contained in the second bin is equal to the
Reasonable estimates of holding and shortage costs
In a two-bin inventory system, the amount contained in the second bin is equal to the
D)
In a two-bin inventory system, the amount contained in the second bin is equal to the
Using an EOQ model for determining order quantity
In a two-bin inventory system, the amount contained in the second bin is equal to the
E)
In a two-bin inventory system, the amount contained in the second bin is equal to the
All are requirements
In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

10

In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

Which one of the following would not appear on a list of relevant costs of inventory?
In a two-bin inventory system, the amount contained in the second bin is equal to the
A)
In a two-bin inventory system, the amount contained in the second bin is equal to the
Shortage
In a two-bin inventory system, the amount contained in the second bin is equal to the
B)
In a two-bin inventory system, the amount contained in the second bin is equal to the
Carrying
In a two-bin inventory system, the amount contained in the second bin is equal to the
C)
In a two-bin inventory system, the amount contained in the second bin is equal to the
Order
In a two-bin inventory system, the amount contained in the second bin is equal to the
D)
In a two-bin inventory system, the amount contained in the second bin is equal to the
Holding
In a two-bin inventory system, the amount contained in the second bin is equal to the
E)
In a two-bin inventory system, the amount contained in the second bin is equal to the
Overtime
In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

11

In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

What items do students typically buy on an ROP basis?
In a two-bin inventory system, the amount contained in the second bin is equal to the
A)
In a two-bin inventory system, the amount contained in the second bin is equal to the
books
In a two-bin inventory system, the amount contained in the second bin is equal to the
B)
In a two-bin inventory system, the amount contained in the second bin is equal to the
wedding gifts
In a two-bin inventory system, the amount contained in the second bin is equal to the
C)
In a two-bin inventory system, the amount contained in the second bin is equal to the
gasoline for car
In a two-bin inventory system, the amount contained in the second bin is equal to the
D)
In a two-bin inventory system, the amount contained in the second bin is equal to the
computer
In a two-bin inventory system, the amount contained in the second bin is equal to the
E)
In a two-bin inventory system, the amount contained in the second bin is equal to the
bran muffins
In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

12

In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

In a two-bin inventory system, the amount contained in the second bin is equal to the:
In a two-bin inventory system, the amount contained in the second bin is equal to the
A)
In a two-bin inventory system, the amount contained in the second bin is equal to the
ROP
In a two-bin inventory system, the amount contained in the second bin is equal to the
B)
In a two-bin inventory system, the amount contained in the second bin is equal to the
EOQ
In a two-bin inventory system, the amount contained in the second bin is equal to the
C)
In a two-bin inventory system, the amount contained in the second bin is equal to the
amount in the first bin
In a two-bin inventory system, the amount contained in the second bin is equal to the
D)
In a two-bin inventory system, the amount contained in the second bin is equal to the
optimum stocking level
In a two-bin inventory system, the amount contained in the second bin is equal to the
E)
In a two-bin inventory system, the amount contained in the second bin is equal to the
safety stock
In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

13

In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

In the A-B-C classification system, items which account for fifteen percent of the total dollar-volume for a majority of the inventory items would be classified as:
In a two-bin inventory system, the amount contained in the second bin is equal to the
A)
In a two-bin inventory system, the amount contained in the second bin is equal to the
A items
In a two-bin inventory system, the amount contained in the second bin is equal to the
B)
In a two-bin inventory system, the amount contained in the second bin is equal to the
B items
In a two-bin inventory system, the amount contained in the second bin is equal to the
C)
In a two-bin inventory system, the amount contained in the second bin is equal to the
C items
In a two-bin inventory system, the amount contained in the second bin is equal to the
D)
In a two-bin inventory system, the amount contained in the second bin is equal to the
either A items or B items
In a two-bin inventory system, the amount contained in the second bin is equal to the
E)
In a two-bin inventory system, the amount contained in the second bin is equal to the
either B items or C items
In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

14

In a two-bin inventory system, the amount contained in the second bin is equal to the
In a two-bin inventory system, the amount contained in the second bin is equal to the

In the basic EOQ model, if annual demand doubles, the effect on the EOQ is:
In a two-bin inventory system, the amount contained in the second bin is equal to the
A)
In a two-bin inventory system, the amount contained in the second bin is equal to the
It doubles.
In a two-bin inventory system, the amount contained in the second bin is equal to the
B)
In a two-bin inventory system, the amount contained in the second bin is equal to the
It is four times its previous amount.
In a two-bin inventory system, the amount contained in the second bin is equal to the
C)
In a two-bin inventory system, the amount contained in the second bin is equal to the
It is half its previous amount.
In a two-bin inventory system, the amount contained in the second bin is equal to the
D)
In a two-bin inventory system, the amount contained in the second bin is equal to the
It is about 70 percent of its previous amount.
In a two-bin inventory system, the amount contained in the second bin is equal to the
E)
In a two-bin inventory system, the amount contained in the second bin is equal to the
It increases by about 40 percent.
In a two-bin inventory system, the amount contained in the second bin is equal to the

What are the two bins in two

When items in the first bin have been depleted, an order is placed to refill or replace them. The second bin is then supposed to have enough items to last until the order for the first bin arrives. In short, the first bin has a minimum of working stock, and the second bin keeps reserve stock or remaining material.

What inventory model uses a two

The two-bin inventory control, often referred to as Kanban, is a model or system used in determining when resources or inputs should be restocked or recharged. This system is mostly used in the manufacturing sector. Items in the second bin are used to continue production when the first bin gets depleted.

Which of the following is not one of the assumptions of the basic EOQ model?

The assumptions behind the economic order quantity (EOQ) model include all of the following EXCEPT: a constant rate of demand.