Posted: July 9th, 2016

The economic order quantity is the order quantity that results in?

21. Waterhouse Company decreased the size of inventory order quantities that had previously been determined using the EOQ model. If demand remains the same, what is the impact on the number of orders made during the year?
a. increase
b. no change
c. decrease
d. cannot be determined

22. Waterhouse Company decreased the size of inventory order quantities that had previously been determined using the EOQ model. What is the impact on the total amount of annual carrying and ordering costs?
a. increase
b. no change
c. decrease
d. cannot be determined

23. The economic order quantity is the order quantity that results in
a. the minimum total annual inventory costs.
b. the maximum total annual inventory costs.
c. no inventory shortages.
d. minimum ordering costs.

24. Strategic objectives of JIT include
a. increasing profits.
b. improving a firm’s competitive position.
c. increasing inventory.
d. both a and b.

25. The objectives of JIT are achieved by
a. controlling costs.
b. improving delivery performance.
c. improving quality.
d. all of these.