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Question :
16) Which one of the following not an assumption of : 2066007

16) Which one of the following is __not__ an assumption of the basic EOQ model?

A) Demand is unknown and variable

B) Lead times are fixed and constant

C) Inventory holding cost is based on average inventory

D) There are no backorders

17) Compute the reorder point when weekly demand is 100 units, lead time is 2 weeks, the desired service level is 98% (which corresponds to 2.06 standard deviations from the mean) and the standard deviation of demand during lead time is 30 units.

A) 125 units

B) 262 units

C) 75 units

D) 187 units

18) Compute the required safety stock when weekly demand is 100 units, lead time is 2 weeks, the desired service level is 98% (which corresponds to 2.06 standard deviations from the mean)and the standard deviation of demand during lead time is 30 units.

A) 25 units

B) 48 units

C) 62 units

D) 75 units

19) Compute the reorder point when daily demand is 25 units,orders are placed every 15 days, the lead time is 10 days, the desired service level is 98% (which corresponds to 2.06 standard deviations from the mean), 50 units are on hand and the standard deviation of daily demand during the uncertainty period is 10 units.

A) 525 units

B) 678 units

C) 362 units

D) 475 units