Engineering Board Exam Reviewer · Engineering Management · medium

In the basic EOQ model, if annual demand quadruples while all other factors stay the same, the EOQ will:

  1. Double
  2. Quadruple
  3. Stay the same
  4. Be halved

Answer

A. Double

Solution

EOQ sqrt(D), and sqrt(4) = 2.

More Engineering Management questions

  1. Average monthly demand is 1000 units, and July demand is typically 1300 units. What is July's seasonal index?
  2. How many possible two-way communication channels exist in a project team of 10 people?
  3. A company has three management levels. The president supervises 8 managers, and each manager supervises 8 supervisors. How many…
  4. A project requiring an investment of ₱2,000,000 earns a net annual profit of ₱300,000. What is its simple rate of return on investment?
  5. Equipment costs ₱600,000, has a salvage value of ₱60,000 and a useful life of 9 years. What is the annual straight-line depreciation?
  6. A product sells for ₱250 and has a variable cost of ₱150 per unit. What is its contribution margin ratio?
  7. A project has PV = ₱400,000, EV = ₱360,000 and AC = ₱450,000. What is the schedule variance (SV)?
  8. A project has PV = ₱400,000, EV = ₱360,000 and AC = ₱450,000. What is the cost variance (CV)?
  9. A project has PV = ₱400,000, EV = ₱360,000 and AC = ₱450,000. What is the schedule performance index (SPI)?
  10. At a status date, a project has a planned value (PV) of ₱400,000, an earned value (EV) of ₱360,000 and an actual cost (AC) of ₱450,000…

All Engineering Management Reviewer questions