Chapter 22

In the basic stock control model, total variable cost is the sum of
1. total ordering cost + total holding cost
2. total ordering cost + total holding cost + purchase cost + other costs
3. total ordering cost + total holding cost + purchase cost
4. the fixed costs
The basic stock control model relates the economic order quantity to:
1. total ordering costs
2. total holding cost
3. total ordering cost and total holding cost
4. the annual level of demand, the ordering cost and holding cost per item p.a.
The basic stock control model assumes:
1. known demand
2. constant demand
3. zero lead time
4. all of the above
Making larger orders to gain a discount could
1. increase the annual purchase cost
2. increase the annual ordering cost
3. increase the annual holding cost
4. none of the above
The ‘simple’ model of the single server queue assumes
1. some customers will leave the queue
2. only so many customers will ever be in the queue
3. customers will continue to wait to be served
4. none of the above
If the average arrival rate is less than the average service rate
1. the average number of customers in the queue will continue to increase
2. the average number of customers in the queue will reach a steady state
3. the average number of customers in the queue will continue to decrease
The model of the multi-channel queue assumes
1. a limited number of customers
2. that when you are served will depend on the queue you join
3. the first to arrive are the first to be served
4. all of the above
In a multi-channel queue, if the total arrival rate must be more than the total service rate
1. the queue will reach a maximum length
2. the queue will get longer and longer
3. the queue will reach a steady state
4. none of the above

Chapter 22

Quiz