Based on the EOQ Model,an Appropriate Strategy for Managing Inventory

question 76

Multiple Choice

Based on the EOQ model,an appropriate strategy for managing inventory when there has been a dramatic increase in holding costs but ordering costs have been significantly reduced would be:

• A)unchanged order quantities.
• B)slightly decreased order quantities.
• C)significantly decreased order quantities.
• D)slightly increased order quantities.
• E)significantly increased order quantities.

---

Definitions:

Thyroid Gland

An endocrine gland in the neck that produces hormones regulating heart rate, body temperature, and metabolism.

Acromegaly

A hormonal disorder that results from an excess of growth hormone after the growth plates have closed, leading to enlarged bones in the hands, feet, and face.

Cretinism

A condition of severely stunted physical and mental growth due to untreated congenital deficiency of thyroid hormones.

Hypothalamus

A region of the brain that controls a variety of functions including temperature, hunger, and hormonal balance.