COMM 225 QUIZ 2 WITH VERIFIED ANSWERS 2024-2025 CONCORDIA
UNIVERSITY
Which of the following is not an assumption of the basic EOQ model?
Select one:
Lead time does not vary.
There are no quantity discounts.
Only one product is involved.
Each order is received in a single delivery.
e. Holding costs are independent of price.
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The correct answer is: Holding costs are independent of price.
Question 2
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Ann Chovies, owner of the Perfect Pasta Pizza Parlour, uses 20 pounds of pepperoni each day in preparing
pizzas. Order costs for pepperoni are $10.00 per order, and holding costs are 4 cents per pound per day. Lead
time for each order is 3 days, and the pepperoni itself costs $3.00 per pound.
If she were to order 80 pounds of pepperoni at a time, what would be the total daily costs, including the cost of the
pepperoni?
Select one:
$63.20
$65.00
c. $64.10
d. $60.00
e. $64.00
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The correct answer is: $64.10
Question 3
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Which of the following is not true for the EPQ model?
Select one:
a. Production rate exceeds usage rate.
b. There are no ordering or setup costs.
c. Average inventory is calculated as one-half maximum inventory.
d. The maximum inventory occurs just after production ceases.
e. Usage rate is assumed to be constant.
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The correct answer is: There are no ordering or setup costs.
Question 4
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In the basic EOQ model, if annual demand doubles, the effect on the EOQ is:
Select one:
It is about 70 percent of its previous amount.
It doubles.
It is half its previous amount.
It is four times its previous amount.
e. It increases by about 40 percent.
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The correct answer is: It increases by about 40 percent.
Question 5
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Simple exponential smoothing is being used to forecast demand. The previous forecast of 66 turned out
to be four units less than actual demand. The next forecast is 66.6, implying a smoothing constant, alpha,
equal to:
Select one:
a. .01
b. .15
c. .10
d. .20
e. .60
Feedback
The correct answer is: .15
The actual demand and the forecasted demand for a product were as follows:
Compute the MAPE.
Select one:
a. 7.7
0.077
23
20.3
none of these
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The correct answer is: 7.7
Question 7
UNIVERSITY
Which of the following is not an assumption of the basic EOQ model?
Select one:
Lead time does not vary.
There are no quantity discounts.
Only one product is involved.
Each order is received in a single delivery.
e. Holding costs are independent of price.
Feedback
The correct answer is: Holding costs are independent of price.
Question 2
Correct
Mark 1.00 out of 1.00
Flag question
Question text
Ann Chovies, owner of the Perfect Pasta Pizza Parlour, uses 20 pounds of pepperoni each day in preparing
pizzas. Order costs for pepperoni are $10.00 per order, and holding costs are 4 cents per pound per day. Lead
time for each order is 3 days, and the pepperoni itself costs $3.00 per pound.
If she were to order 80 pounds of pepperoni at a time, what would be the total daily costs, including the cost of the
pepperoni?
Select one:
$63.20
$65.00
c. $64.10
d. $60.00
e. $64.00
Feedback
The correct answer is: $64.10
Question 3
Correct
,Mark 1.00 out of 1.00
Flag question
Question text
Which of the following is not true for the EPQ model?
Select one:
a. Production rate exceeds usage rate.
b. There are no ordering or setup costs.
c. Average inventory is calculated as one-half maximum inventory.
d. The maximum inventory occurs just after production ceases.
e. Usage rate is assumed to be constant.
Feedback
The correct answer is: There are no ordering or setup costs.
Question 4
Correct
Mark 1.00 out of 1.00
Flag question
Question text
In the basic EOQ model, if annual demand doubles, the effect on the EOQ is:
Select one:
It is about 70 percent of its previous amount.
It doubles.
It is half its previous amount.
It is four times its previous amount.
e. It increases by about 40 percent.
Feedback
The correct answer is: It increases by about 40 percent.
Question 5
Correct
, Mark 1.00 out of 1.00
Flag question
Question text
Simple exponential smoothing is being used to forecast demand. The previous forecast of 66 turned out
to be four units less than actual demand. The next forecast is 66.6, implying a smoothing constant, alpha,
equal to:
Select one:
a. .01
b. .15
c. .10
d. .20
e. .60
Feedback
The correct answer is: .15
The actual demand and the forecasted demand for a product were as follows:
Compute the MAPE.
Select one:
a. 7.7
0.077
23
20.3
none of these
Feedback
The correct answer is: 7.7
Question 7
