4. Operations

Inventory Control — Quiz

Test your understanding of inventory control with 5 practice questions.

Practice Questions

Question 1

Which of the following describes the relationship between ordering cost and holding cost in the Economic Order Quantity (EOQ) model?

Question 2

A company has an annual demand of $18,000$ units, an ordering cost of $40$ per order, and a holding cost of $3$ per unit per year. What is the Economic Order Quantity (EOQ)?

Question 3

In a continuous review inventory system, what triggers the placement of a new order?

Question 4

A company has an average daily demand of $60$ units, a lead time of $8$ days, and desires a safety stock of $120$ units. What is the reorder point (ROP)?

Question 5

Which of the following is a primary challenge in managing inventory across a decentralized supply chain network?