OPMA – 3306 EXAM QUESTIONS WITH
CORRECT ANSWERS
To Calculate the reorder point for a fixed-order quantity model with safety stock, all of
the following are required EXCEPT
A. Lead time in days
B. Current inventory level
C. Average daily demand
D. Standard deviation of usage during lead time - Correct Answers -B. Current inventory
level
T/F When a vendor makes routine visits to a firm to take orders, a fixed-time period
model may be a good choice. - Correct Answers -True
In a fixed-time period inventory model, the interval of time between orders is
_____________ and order quantity varies. - Correct Answers -fixed
Which of the following is NOT considered when calculating the order quantity in a fixed-
time period model?
A. Inventory currently on-hand
B. Current stock at the supplier
C. Standard deviation of demand
D. Lead time - Correct Answers -B. Current stock at the supplier
When placing an order for a single period, which of the following is considered?
1. The cost of overestimating demand
2. The cost of transportation
3. The cost of underestimating demand
4. The cost of placing an order - Correct Answers -1 & 3
A single period ____________ model helps in situations where a company is trying to
produce the optimal quantity of inventory for a single event minimizing overproduction
costs and potential lost revenues. - Correct Answers -inventory
In a single period model, Co represents the cost per unit of ___________ estimating
demand. - Correct Answers -over
Inventory classifications of A, B and C are based on:
CORRECT ANSWERS
To Calculate the reorder point for a fixed-order quantity model with safety stock, all of
the following are required EXCEPT
A. Lead time in days
B. Current inventory level
C. Average daily demand
D. Standard deviation of usage during lead time - Correct Answers -B. Current inventory
level
T/F When a vendor makes routine visits to a firm to take orders, a fixed-time period
model may be a good choice. - Correct Answers -True
In a fixed-time period inventory model, the interval of time between orders is
_____________ and order quantity varies. - Correct Answers -fixed
Which of the following is NOT considered when calculating the order quantity in a fixed-
time period model?
A. Inventory currently on-hand
B. Current stock at the supplier
C. Standard deviation of demand
D. Lead time - Correct Answers -B. Current stock at the supplier
When placing an order for a single period, which of the following is considered?
1. The cost of overestimating demand
2. The cost of transportation
3. The cost of underestimating demand
4. The cost of placing an order - Correct Answers -1 & 3
A single period ____________ model helps in situations where a company is trying to
produce the optimal quantity of inventory for a single event minimizing overproduction
costs and potential lost revenues. - Correct Answers -inventory
In a single period model, Co represents the cost per unit of ___________ estimating
demand. - Correct Answers -over
Inventory classifications of A, B and C are based on:
