1. The weekly demand of a product is 200 units on average and the order lead time is 2 weeks. How many kanbans are needed at a single location when we set the smoothing factor to 1.2?
480
960
400
Cannot be determined
2. The objective of EOQ model is to:
Calculate the reorder point, so that replenishments take place at the proper time
Maximize customer service level
Minimize total inventory holding cost in a year
Minimize the sum of annual purchasing, setup, and inventory holding costs
3. Suppose the standard deviation of demand is 6 units per week and demand is 30 units per week on average. If the order lead time is 1 week and the desired service level is 95%, how much safety stock should we hold using the continuous review model? Find the closest value.
40
10
36
20
4. Suppose a maximization LP problem has the following four corner points: (0, 0), (10, 0), (5, 5), and (0, 7). If the objective function is X+ 2Y, what is the optimal objective value?
0
10
15
14