91. There are two products P and Q with the following characteristics
    
    The Economic Order Quantity (EOQ) of products P and Q will be in the ratio

1. 1. 1: 1

   
   
   

   2. 1: 2

   
   
   

   3. 1: 4

   
   
   

   4. 1: 8

   
   
   

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1. View Hint View Answer Discuss in Forum

   
   

   =	EOQp	=	1
   	EOQQ		1

   Correct Option: C

   
   

   =	EOQp	=	1
   	EOQQ		1

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92. Market demand for springs is 8,00,000 per annum. A company purchases these spring in lots and sells them. The cost of making a purchase order is Rs. 1,200. The cost of Storage of springs is Rs. 120 per stored piece per annum. The economic order quantity is

1. 1. 400

   
   
   

   2. 2,828

   
   
   

   3. 4,000

   
   
   

   4. 8,000

   
   
   

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1. View Hint View Answer Discuss in Forum

   D = 8,00,000 units/year
   C_o = 1200/Order
   C_h = 120/unit/ year
   
   Q* = 4000 units

   Correct Option: C

   D = 8,00,000 units/year
   C_o = 1200/Order
   C_h = 120/unit/ year
   
   Q* = 4000 units

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93. In inventory planning, extra inventory is unnecessarily carried to the end of the planning period when using one of the following lot size decision policies:

1. 1. Lot for lot production

   
   
   

   2. Economic Order Quantity (EOQ) lot size

   
   
   

   3. Period Order Quantity (POQ) lot size

   
   
   

   4. Part period total cost balancing

   
   
   

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1. View Hint View Answer Discuss in Forum

   NA

   Correct Option: B

   NA

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94. The sale of cycles in a shop in four consecutive months are given as 70, 68, 82, 95. Exponentially smoothing average method with a smoothing factor of 0.4 is used in forecasting. The expected number of sales in the next month is

1. 1. 59

   
   
   

   2. 72

   
   
   

   3. 86

   
   
   

   4. 136

   
   
   

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1. View Hint View Answer Discuss in Forum

   F_t+1 = D_t + α(1 – α) D_t–1 + α(1 – α) ² D_t–2
   F_t+1 = 0.4 (95) + 0.4 (1 – 0.4)² + α(1 – α)³ D_t–3 + (0.4) (1 – 0.4)² × 68 + (0.4) (1 – 0.4)³ × 70
   F_{t–1 = 73.52 units}

   Correct Option: C

   F_t+1 = D_t + α(1 – α) D_t–1 + α(1 – α) ² D_t–2
   F_t+1 = 0.4 (95) + 0.4 (1 – 0.4)² + α(1 – α)³ D_t–3 + (0.4) (1 – 0.4)² × 68 + (0.4) (1 – 0.4)³ × 70
   F_{t–1 = 73.52 units}

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95. A regression model is used to express a variable V as a function of another variable X, this implies that

1. 1. There is a causal relationship between Y and X

   
   
   

   2. A value of X may be used to estimate a value of Y

   
   
   

   3. Values of X exactly determine values of Y

   
   
   

   4. There is no causal relationship between Y and X

   
   
   

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1. View Hint View Answer Discuss in Forum

   NA

   Correct Option: A

   NA

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