Which of the following statements is FALSE if the production run size is Q,the production rate is p,and the demand or usage rate is d?
A)The number days of production run is given by Q/p.
B)Inventory used up at the end of the production cycle is given by (Q/p)× d.
C)Inventory used up at the end of the production cycle is given by (p/Q)× d.
D)The maximum inventory is given by Q x (1-d/p).

Question

Quizplus · Accepted Answer

Option A is true because the number of days of production run can be calculated by dividing the total quantity produced(Q) by the production rate per day(p).
Option B is also true because inventory used up at the end of the production cycle is the total quantity produced(Q) multiplied by the demand or usage rate(d) over the production rate per day(p).
Option C is false because the correct formula for inventory used up at the end of the production cycle is (Q/p) multiplied by the demand or usage rate(d).
Option D is true because the maximum inventory is the production quantity(Q) multiplied by the difference between 1 and the demand or usage rate(d) divided by the production rate per day(p).

Which of the Following Statements Is FALSE If the Production