OM 300 FINAL EXAM 2025 WITH ACTUAL
CORRECT QUESTIONS AND VERIFIED
DETAILED ANSWERS |FREQUENTLY TESTED
QUESTIONS AND SOLUTIONS |ALREADY
GRADED A+| NEWEST!!|LATEST UPDATE
|GUARANTEED PASS
__________ is the practice of choosing an outsource provider in the home country or in a
nearby country.
nearshoring
__________ is the number-one reason driving outsourcing for many firms
cost savings
Whatever the outsourced product or service, agreements must specify ongoing __________
and expected __________.
performance measures and outcomes
In the electronics industry, the __________ sets environmental standards, bans child labor and
excessive overtime, and audits outsourcing producers to ensure compliance.
Electronics Industry Code of Conduct (or EICC)
Outsourcing manufacturing is also known as __________.
contract manufacturing
Which of the following statements regarding Amazon.com is false?
The company was founded as, and still is, a "virtual retailer" with no inventory
Which of the following would not generally be a motive for a firm to hold inventories?
to minimize holding costs
1|Page
,Which of the following is not one of the four main types of inventory?
safety stock inventory
Which of the following statements about ABC analysis is false?
ABC analysis is based on the presumption that all items must be tightly controlled to produce
important cost savings.
All of the following statements about ABC analysis are true except
it states that all items require the same degree of control
ABC analysis is based upon the principle that
there are usually a few critical items, and many items which are less critical
ABC analysis divides on-hand inventory into three classes, generally based upon
annual dollar volume
Cycle counting
provides a measure of inventory accuracy
Which of the following statements regarding control of service inventories is true?
Effective control of all goods leaving the facility is one applicable technique.
The two most basic inventory questions answered by the typical inventory model are
timing and quantity of orders
Among the advantages of cycle counting is that it
allows more rapid identification of errors and consequent remedial action than is possible with
annual physical inventory
Which of the following is not an assumption of the economic order quantity model shown
below?
Q= square root of 2⋅D⋅S/H
Production and use can occur simultaneously.
The primary purpose of the basic economic order quantity model shown below is
Q=square root of 2⋅D⋅S/H
to minimize the sum of setup cost and holding cost
2|Page
,If the actual order quantity is the economic order quantity in a problem that meets the
assumptions of the economic order quantity model shown below, the average amount of
inventory on hand
Q= square root of 2⋅D⋅S/H
is one-half of the economic order quantity
A certain type of computer costs $1,000, and the annual holding cost is 25%. Annual demand is
10,000 units, and the order cost is $150 per order. What is the approximate economic order
quantity?
110
Most inventory models attempt to minimize
total inventory based costs
In the basic EOQ model, if the cost of placing an order doubles, and all other values remain
constant, the EOQ will
increase by about 41%
In the basic EOQ model, if D=6000 per year, S=$100, H=$5 per unit per month, the economic
order quantity is approximately
141
Which of the following statements about the basic EOQ model is true?
All of the above statements are true.
Which of the following statements about the basic EOQ model is false?
If annual demand were to double, the EOQ would also double.
A product whose EOQ is 40 experiences a decrease in ordering cost from $90 per order to $10.
The revised EOQ is
one-third as large
A product whose EOQ is 400 experiences a 50% increase in demand. The new EOQ is
increased by less than 50%
For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model was
200 units and the total annual inventory (carrying and setup) cost was $600. The inventory
carrying cost per unit per year for this item is
3|Page
, $3
A product has demand of 4000 units per year. Ordering cost is $20 and holding cost is $4 per
unit per year. The EOQ model is appropriate. The cost-minimizing solution for this product will
cost _____ per year in total annual inventory costs.
$800
A product has demand of 4000 units per year. Ordering cost is $20 and holding cost is $4 per
unit per year. The cost-minimizing solution for this product is to order
200 units per order
The EOQ model with quantity discounts attempts to determine
how many units should be ordered
An inventory decision rule states "when the inventory level goes down to 14 gearboxes, 100
gearboxes will be ordered." Which of the following statements is true?
Fourteen is the reorder point, and 100 is the order quantity.
Which of the following statements regarding the production order quantity model is true?
It relaxes the assumption that all the order quantity is received at one time
Which of these statements about the production order quantity model is false?
All else equal, the smaller the ratio of demand rate to production rate, the larger is the
production order quantity.
The assumptions of the production order quantity model are met in a situation where annual
demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand
rate is 10 and the daily production rate is 100. The production order quantity for this problem is
approximately
184
A production order quantity problem has daily demand rate = 10 and daily production rate = 50.
The production order quantity for this problem is approximately 612 units. The average
inventory for this problem is approximately
245
Which category of inventory holding costs is much higher than average for rapid-change
industries such as PCs and cell phones?
4|Page
CORRECT QUESTIONS AND VERIFIED
DETAILED ANSWERS |FREQUENTLY TESTED
QUESTIONS AND SOLUTIONS |ALREADY
GRADED A+| NEWEST!!|LATEST UPDATE
|GUARANTEED PASS
__________ is the practice of choosing an outsource provider in the home country or in a
nearby country.
nearshoring
__________ is the number-one reason driving outsourcing for many firms
cost savings
Whatever the outsourced product or service, agreements must specify ongoing __________
and expected __________.
performance measures and outcomes
In the electronics industry, the __________ sets environmental standards, bans child labor and
excessive overtime, and audits outsourcing producers to ensure compliance.
Electronics Industry Code of Conduct (or EICC)
Outsourcing manufacturing is also known as __________.
contract manufacturing
Which of the following statements regarding Amazon.com is false?
The company was founded as, and still is, a "virtual retailer" with no inventory
Which of the following would not generally be a motive for a firm to hold inventories?
to minimize holding costs
1|Page
,Which of the following is not one of the four main types of inventory?
safety stock inventory
Which of the following statements about ABC analysis is false?
ABC analysis is based on the presumption that all items must be tightly controlled to produce
important cost savings.
All of the following statements about ABC analysis are true except
it states that all items require the same degree of control
ABC analysis is based upon the principle that
there are usually a few critical items, and many items which are less critical
ABC analysis divides on-hand inventory into three classes, generally based upon
annual dollar volume
Cycle counting
provides a measure of inventory accuracy
Which of the following statements regarding control of service inventories is true?
Effective control of all goods leaving the facility is one applicable technique.
The two most basic inventory questions answered by the typical inventory model are
timing and quantity of orders
Among the advantages of cycle counting is that it
allows more rapid identification of errors and consequent remedial action than is possible with
annual physical inventory
Which of the following is not an assumption of the economic order quantity model shown
below?
Q= square root of 2⋅D⋅S/H
Production and use can occur simultaneously.
The primary purpose of the basic economic order quantity model shown below is
Q=square root of 2⋅D⋅S/H
to minimize the sum of setup cost and holding cost
2|Page
,If the actual order quantity is the economic order quantity in a problem that meets the
assumptions of the economic order quantity model shown below, the average amount of
inventory on hand
Q= square root of 2⋅D⋅S/H
is one-half of the economic order quantity
A certain type of computer costs $1,000, and the annual holding cost is 25%. Annual demand is
10,000 units, and the order cost is $150 per order. What is the approximate economic order
quantity?
110
Most inventory models attempt to minimize
total inventory based costs
In the basic EOQ model, if the cost of placing an order doubles, and all other values remain
constant, the EOQ will
increase by about 41%
In the basic EOQ model, if D=6000 per year, S=$100, H=$5 per unit per month, the economic
order quantity is approximately
141
Which of the following statements about the basic EOQ model is true?
All of the above statements are true.
Which of the following statements about the basic EOQ model is false?
If annual demand were to double, the EOQ would also double.
A product whose EOQ is 40 experiences a decrease in ordering cost from $90 per order to $10.
The revised EOQ is
one-third as large
A product whose EOQ is 400 experiences a 50% increase in demand. The new EOQ is
increased by less than 50%
For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model was
200 units and the total annual inventory (carrying and setup) cost was $600. The inventory
carrying cost per unit per year for this item is
3|Page
, $3
A product has demand of 4000 units per year. Ordering cost is $20 and holding cost is $4 per
unit per year. The EOQ model is appropriate. The cost-minimizing solution for this product will
cost _____ per year in total annual inventory costs.
$800
A product has demand of 4000 units per year. Ordering cost is $20 and holding cost is $4 per
unit per year. The cost-minimizing solution for this product is to order
200 units per order
The EOQ model with quantity discounts attempts to determine
how many units should be ordered
An inventory decision rule states "when the inventory level goes down to 14 gearboxes, 100
gearboxes will be ordered." Which of the following statements is true?
Fourteen is the reorder point, and 100 is the order quantity.
Which of the following statements regarding the production order quantity model is true?
It relaxes the assumption that all the order quantity is received at one time
Which of these statements about the production order quantity model is false?
All else equal, the smaller the ratio of demand rate to production rate, the larger is the
production order quantity.
The assumptions of the production order quantity model are met in a situation where annual
demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand
rate is 10 and the daily production rate is 100. The production order quantity for this problem is
approximately
184
A production order quantity problem has daily demand rate = 10 and daily production rate = 50.
The production order quantity for this problem is approximately 612 units. The average
inventory for this problem is approximately
245
Which category of inventory holding costs is much higher than average for rapid-change
industries such as PCs and cell phones?
4|Page
