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| 1 | |
Each year, Eldorado Company works 50 weeks and uses 50 000 grams of gold to produce jewellery. The cost of placing an order is $100. The annual cost of holding one gram of gold is $10. It currently places a total of 20 orders annually, with an order lead time of two weeks, and each order is for 2500 grams of gold. Eldorado has decided to use the economic order quantity as the order size. <BR><BR>
How many orders will be submitted each year when the economic order quantity is used for making purchases of gold? |
| | A) | 30 orders per year. |
| | B) | 40 orders per year. |
| | C) | 50 orders per year. |
| | D) | 60 orders per year. |
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| 2 | |
Each year, Eldorado Company works 50 weeks and uses 50 000 grams of gold to produce jewellery. The cost of placing an order is $100. The annual cost of holding one gram of gold is $10. It currently places a total of 20 orders annually, with an order lead time of two weeks, and each order is for 2500 grams of gold. Eldorado has decided to use the economic order quantity as the order size. <BR><BR>
If it used the economic order quantity, the annual cost that Eldorado would incur is: |
| | A) | $5000 |
| | B) | $10 000 |
| | C) | $12 500 |
| | D) | $14 500 |
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| 3 | |
Each year, Eldorado Company works 50 weeks and uses 50 000 grams of gold to produce jewellery. The cost of placing an order is $100. The annual cost of holding one gram of gold is $10. It currently places a total of 20 orders annually, with an order lead time of two weeks, and each order is for 2500 grams of gold. Eldorado has decided to use the economic order quantity as the order size.<BR><BR>
If it used the economic order quantity (EOQ), the annual amount Eldorado would save is: |
| | A) | $2500 |
| | B) | $4500 |
| | C) | $5000 |
| | D) | $10 000 |
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| 4 | |
Each year, Eldorado Company works 50 weeks and uses 50 000 grams of gold to produce jewellery. The cost of placing an order is $100. The annual cost of holding one gram of gold is $10. It currently places a total of 20 orders annually, with an order lead time of two weeks, and each order is for 2500 grams of gold. Eldorado has decided to use the economic order quantity as the order size. <BR><BR>
The reorder point is: |
| | A) | 1000 grams |
| | B) | 2000 grams |
| | C) | 3000 grams |
| | D) | 4000 grams |
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| 5 | |
Each year, Eldorado Company works 50 weeks and uses 50 000 grams of gold to produce jewellery. The cost of placing an order is $100. The annual cost of holding one gram of gold is $10. It currently places a total of 20 orders annually, with an order lead time of two weeks, and each order is for 2500 grams of gold. Eldorado has decided to use the economic order quantity as the order size. It has also decided to have a safety stock of 2000 grams on hand as supply can be erratic and the usage of gold in production can fluctuate. <BR><BR>
The reorder point is: |
| | A) | 2000 grams |
| | B) | 3000 grams |
| | C) | 4000 grams |
| | D) | 5000 grams |
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| 6 | |
Just-in-time (JIT) production does not feature: |
| | A) | the simplification of production processes |
| | B) | the purchase of materials and manufacture of subassemblies and products in small lots |
| | C) | the quick and inexpensive sets of production machinery |
| | D) | the search for the absolutely lowest price available for materials |
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| 7 | |
Just-in-time (JIT) purchasing includes which of the following features? |
| | A) | Short-term contracts with suppliers. |
| | B) | Materials and parts delivered in large lots and stored until needed. |
| | C) | Manual ordering and payments. |
| | D) | Reduced numbers of suppliers. |
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| 8 | |
The aim of just-in-time (JIT) systems is to: |
| | A) | reduce excessive inventories only |
| | B) | reduce the costs associated with holding inventories |
| | C) | reduce the costs of purchasing inventories |
| | D) | eliminate non-value-added activities |
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| 9 | |
An effective customer relationship management (CRM) system can lead to: |
| | A) | improved customer service |
| | B) | the retention of existing customers |
| | C) | the acquisition of new customers |
| | D) | all of the given answers |
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| 10 | |
Which of the following is not a characteristic of a low-cost customer? |
| | A) | Requires standard products. |
| | B) | Pays in 90 days by cheque, and requires a receipt. |
| | C) | Satisfied with 3-day delivery. |
| | D) | Submits orders electronically using electronic data interchange. |
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