Practice 20 questions on MATH,ECONMAT3532 - MATH, ECON MAT3532 at University of Namibia. Free AI-generated quiz on uNotes — track your score, retake anytime.
1In the context of the Basic Economic Order Quantity (EOQ) model, how is the term 'cycle' defined?
2Ethiopian Airline uses 800 taillights per year at a constant rate. Each order costs N$ 5, the unit price is N$ 100, and the holding cost is 8 cents (N$ 0.08) per light per year. Shortages are not allowed. What is the calculated Economic Order Quantity (EOQ)?
3According to the power-of-two ordering policy proof mentioned in the material, what is the maximum percentage by which the total cost of an optimal power-of-two policy can exceed the total cost of the standard EOQ?
4In the Walton Bookstore calendar problem, if a calendar is bought for N$ 2.00, sold for N$ 4.50, and has a salvage value (refund) of N$ 0.75 after January, what is the 'cost of overstocking' (marginal loss) per unit?
5New Edge Construction is bidding on a job costing N$ 300,000. A competitor's bid is uniformly distributed between N$ 200,000 and N$ 400,000. To maximize expected profit, what should New Edge bid?
6Which of the following components are part of the Total Annual Cost (TC) equation for the Basic EOQ Model as derived in the course?
7In the decision tree problem for the art dealer, which factors contribute to the complexity of the strategy?
8Tonga Optical Mini Clinic allows backlogging. If the annual demand is 10,000 frames, ordering cost is N$ 50, holding cost is 30% of the unit value (N$ 15), and shortage cost is N$ 15 per year, which variable would be used to calculate the maximum shortage?
9In the computer store inventory problem, what factors define the reorder point when lead time is variable?
10If Edwina is risk-neutral and must decide whether to take a gold option today or wait for Congress, what is her primary decision criterion?
