Inventory Management MCQ Questions and Answers Quiz

31. The order cost per order of an inventory is Rs. 400 with an annual carrying cost of Rs. 10 per unit. The Economic Order Quantity (EOQ) for an annual demand of 2000 units is

  1. 400
  2. 440
  3. 480
  4. 500

32. The time period between placing an order its receipt in stock is known as

  1. Lead time
  2. Carrying time
  3. Shortage time
  4. Over time

33. The two basic questions in inventory management are how much to order and when to order.

  1. true.
  2. false.

34. Use of the fixed-interval model requires having a perpetual inventory system.

  1. true.
  2. false.

35. Using the basic EOQ model, if the ordering cost doubles, the order quantity will be

  1. double its former value
  2. about 50% of its former value
  3. about 71% of its former value
  4. unaffected

36. Using the EOQ model, if an items holding cost increases, its order quantity will decrease.

  1. true.
  2. false.

37. When using EOQ ordering, the order quantity must be computed in every order cycle.

  1. true.
  2. false.

38. Which model does not take into account the amount of inventory on hand?

  1. FOI
  2. ROP
  3. EOQ

39. Which of the following is not an inventory?

  1. Machines
  2. Raw material
  3. Finished products
  4. Consumable tools

40. Which of the following is true for Inventory control?

  1. Economic order quantity has minimum total cost per order
  2. Inventory carrying costs increases with quantity per order
  3. Ordering cost decreases with lo size
  4. All of the above

MCQ Multiple Choice Questions and Answers on Inventory Management

Inventory Management Trivia Questions and Answers PDF

Inventory Management Question and Answer

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