Applied Stats

DSC2006 Practice MCQs on Week 8, 9, 10, 11 Lectures

1. Aggregate planning requires which of the following information? 

1. forecast of demand
2. current levels of inventory
3. policies regarding employment levels
4. all of above
5. none of above

1. Which one of the following most closely describes net material requirements? 

1. gross requirements - amount on-hand - scheduled receipts
2. gross requirements - planned receipts
3. gross requirements - order releases + amount on-hand
4. gross requirements - planned order releases
5. gross requirements - amount on-hand + planned order releases

1. In MRP, under lot-for-lot ordering, "planned-order receipts" are: 

1.  identical to "scheduled receipts"
2.  identical to "planned-order releases"
3. open orders (that is, ordered before the first time bucket, but not delivered yet)
4. "gross requirements"
5. available to promise inventory

1. Effective inventory management includes

1. minimize holding costs
2. indicate how much to order / make
3. minimize ordering costs
4. indicate when to order / re-order /make
5. all of above

1. In basic EOQ model, if lead time increases from 5 to 10 days, the EOQ will:

1. double
2. increase, but not double
3. decrease by a factor of 2
4. remain the same
5. none of above

1. Which of the following about basic EOQ model is false:

1. A decrease in demand will decrease the EOQ
2. If the actual order quantity is smaller than the EOQ, the annual holding costs is less than the annual ordering costs
3. An increase in unit holding costs will decrease the EOQ value
4. Annual holding costs and annual ordering costs are the same at the EOQ point
5. All of above are true

1. The introduction of quantity discounts will cause the optimum order quantity to be:

1. smaller
2. unchanged
3. greater
4. smaller or unchanged
5. unchanged or greater

1. Which of the following about EPQ model is false:

1. A decrease in demand will decrease the EPQ
2. Imax is always smaller than EPQ
3. An increase in unit holding costs will decrease the EPQ value
4. Annual holding costs and annual ordering costs are the same at the EPQ point
5. All of above are true

1. Which of the following is false about Newsboy model:

1. It is a periodic inventory replenishment model
2. It deals with random demand
3. It manages perishable inventory replenishment
4. Optimal order Q* always equals to demand mean
5. All of above are true

1. Which of the following is true about Revenue Management (RM):

1. Decision must be made before the demand uncertainty is resolved
2. Necessary Conditions for Applying RM is that the same resource can be used for different segments of customers
3. If additional supply is impossible, adjust the demand
4. Charge the right customer at the right time for the right price
5. All of above are true