Sensitivity analysis on the economic order quantity (EOQ) formula can help the operations manager answer several questions on how to manage inventories. Which one of the following questions is NOT answered by EOQ sensitivity analysis?
A) How critical are errors in estimating demand (D), inventory holding cost (H), and setup cost (S)?
B) What should happen to lot sizes if interest rates drop?
C) What should happen to cycle inventory if the demand rate increases?
D) What should happen to lot sizes if supply and lead-time uncertainty increase?
D
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The most important aspect of every firm's organizational architecture is:
a) investors b) ethical guidelines c) products or services d) people
Martha sends out 300 mail surveys to a representative group of respondents. Of these, 175 fill out the survey and mail it back to her. She realizes that those who responded were significantly more educated and had higher incomes than the general population. This is an illustration of:
a. response error. b. nonresponse error. c. sampling error. d. interest error. e. representation error.