question archive The economic order quantity (EOQ) is achieved when the annual total inventory cost is at the minimum
The economic order quantity (EOQ) is achieved when the annual total inventory cost is at the minimum
Subject:ManagementPrice: Bought3
The economic order quantity (EOQ) is achieved when the annual total inventory cost is at the minimum. This happens whena. the annual holding cost is at the lowestb. the annual ordering (set up) cost is at the lowestc. the annual holding cost equals the annual ordering costd. the annual holding cost is smaller than the annual ordering cost7. Decreasing the safety stock will result ina. larger reorder pointb. smaller service levelc. larger service leveld. no change in the service level8. In basic EOQ model,higher holding cost (H) will result ina. smaller order quantityb. larder order quantityc. higher reorder pointd. lower reorder point.
