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1. Please choose one or more of the following statements that is/are incorrect: a) When ordering
quantity deviates a little from EOQ, the resulting annual total cost will be close to optimal annual
total cost. b) In the EOQ model with positive lead time, we always order when on hand inventory
is depleted. c) In the EOQ model, the unit holding cost is a constant. d) When unit procurement
cost gets discounted for large order quantity, the unit holding cost does not vary. Answer: 2.
Which one of the following is incremental quantity discount? a) Save 20% when you spend $100
or more b) Enjoy a 25% off when you buy 10 or more boxes of oranges c) Buy two and get the
third one at 75% of its original price Answer:

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1. Please choose one or more of the follo.pdf

  • 1. 1. Please choose one or more of the following statements that is/are incorrect: a) When ordering quantity deviates a little from EOQ, the resulting annual total cost will be close to optimal annual total cost. b) In the EOQ model with positive lead time, we always order when on hand inventory is depleted. c) In the EOQ model, the unit holding cost is a constant. d) When unit procurement cost gets discounted for large order quantity, the unit holding cost does not vary. Answer: 2. Which one of the following is incremental quantity discount? a) Save 20% when you spend $100 or more b) Enjoy a 25% off when you buy 10 or more boxes of oranges c) Buy two and get the third one at 75% of its original price Answer: