1. What happens to the validity of the EOQ model of ordering when the reorder point...

1. What happens to the validity of the EOQ model of ordering when the reorder point (ROP) exceeds the maximum inventory level during each cycle of replenishment? Use suitable sketches to support your answer. Limit your answer to two pages

2. For the normal distribution, “joint sufficiency condition” implies one needs only to know the mean and standard deviation of the data distribution to be able to apply it. With this as a fundamental principle, discuss the significance of the “Z-score”. Use suitable sketches to support your answer. Limit your answer to two pages

3. While solving linear programming problems involving two variables using the graphical method, will the optimal solution (assuming there is one) only be at corner points of the feasible solution space? Discuss with suitable sketches

Expert Solution

milcah answered 1 year ago

1)The EOQ model is most relevant for which one of the following? a. ordering items with...

1)The EOQ model is most relevant for which one of the following? a. ordering items with dependent demand models b. determination of safety stock c. ordering perishable items d. determining optimal quantities for independent demand models 2)ABC analysis is based upon the principle that a. all items in inventory must be monitored very closely b. there are usually a few critical items (A items), and many items (C items) which are less critical c. the safety stock (in terms of...

Find the EOQ, the total annual cost associated with the economic order quantity, the reorder point,...

Find the EOQ, the total annual cost associated with the economic order quantity, the reorder point, number of orders per year and the time between orders. Annual Demand 15,600 units Weeks Operating 52 weeks/year Set up Cost $60/order Holding rate 20% Unit cost $80 /unit Lead-Time 5 weeks

The EOQ model is most relevant for which one of the following? a. ordering items with...

The EOQ model is most relevant for which one of the following? a. ordering items with dependent demand b. determination of safety stock c. ordering perishable items d. determining fixed interval order quantities e. determining fixed order quantities

In a basic EOQ model, if the fixed ordering cost F increases, then the optimal time...

In a basic EOQ model, if the fixed ordering cost F increases, then the optimal time between orders, T, will increase. A) True B) False

(1)What are the ASSUMPTIONS of the Classical Model in econometrics? What happens when each of the...

(1)What are the ASSUMPTIONS of the Classical Model in econometrics? What happens when each of the assumptions are violated? Answers are provided in chapter 4 of the required text book for the class. The title of the chapter is “ The Classical Model”

(1) Answer both questions below about the EOQ model. (a) In the EOQ model, unit product...

(1) Answer both questions below about the EOQ model. (a) In the EOQ model, unit product cost or selling price, C, is not included in the formula we use to solve for the economic order quantity. Explain why it is not necessary to include this information in the EOQ formula. (b) What are the major limitations of the EOQ model?

1)Describe IN POINT FORM what happens when you raise the pressure of a sample of water...

1)Describe IN POINT FORM what happens when you raise the pressure of a sample of water from 0.004 atm to 40 atm at a constant temperature of 100 degrees celcius. 2)Describe IN POINT FORM what happens when you raise the temperature of a sample of water from -100 to +300 at a constant pressure of 40 atm.

(1) Basic EOQ: You need to briefly describe the basic EOQ model with modeling assumption, the...

(1) Basic EOQ: You need to briefly describe the basic EOQ model with modeling assumption, the economic order quantity formula and the feature (insight). (2) EOQ extensions: Considering relaxing the assumptions in basic EOQ, you may get various EOQ model extensions. What’s the possible extension will be? For each extension, briefly describe the assumption, formula and feature as well. (3) Considering the following situations. Classify them as either A for appropriate or L for less appropriate for application of the...

using the model that predicts the price level and RGDP, show what happens when there is...

using the model that predicts the price level and RGDP, show what happens when there is a decrease in a country's labor productivity, and then expansionary fiscal policy (temporarily) restores the original level of RGDP. Hint: There will be points 1, 2, 3 and 4.

Using the model that predicts the inflation and unemployment rate, show what happens when there is...

Using the model that predicts the inflation and unemployment rate, show what happens when there is a decrease in aggregate demand, and then the government conducts perfect counter-cyclical policy (before expectations adjust)

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