Who can answer these in 5 minutes?


  1. An increase in the inventory holding costs would ________________ the economic order quantities.
    not affect
    would cancel

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10 points


  1. Assume that your company follows a continues review system and you are told to use this ‘exact system’ and convert it into a periodic review inventory management system. Which one of the following would you have to determine for the new system?
    Safety inventory, quantity to order (EOQ), and the reorder point for the new system
    safety inventory, time between the orders, and the target for the new system
    All of the above must be determined before you start a new system
    None of the above.