# Management Science - Economic Order Quantity

Details: 1. Which of the following statements are true for f(x) = -3x2 + 2x + 5?

(Chapter 10)

a. f(x) is a concave function

b. f(x) </= 10 is a convex set

c. f(x) >/= 2 is a convex set

d. a and b

2. In the basic EOQ model, if D = 55 per month, S = $10, and H = $7

per unit per month, what is the EOQ? (Chapter 16)

a. 10.5

b. 11.5

c. 12.5

d. 13.5

3. Given that annual demand equals 1000 units, Co = $300 per order

and Cc = $3 per unit, how many days are between orders in the

classical EOQ model?

a. 105

b. 110

c. 115

d. 120

4. If the demand rate and lead time are constant, then the

___________will have a _________ that will be made at specified

time intervals, which is the same as the ____________ under similar

conditions. (Chapter 16)

a. fixed-order / fixed-period model / fixed-quantity model

b. fixed-period model / fixed quantity model / fixed-order

quantity

c. fixed-quantity model / fixed-order quantity / fixed-period

model

d. fixed-period model / fixed-order quantity / fixed quantity

model

5. If the demand rate and lead time are constant, then the fixed-period

model will have a fixed-order quantity that will be made at specified

time intervals, which is the same as the fixed-quantity model under

_________conditions. (Chapter 16)

a. different

b. similar

c. constant

d. all of the above

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#### Solution Preview

1a. It is a concave function (f'x exists and f"x is>0)

<br>2.EOQ = SQRT(2DS/H)

<br> = ...