The Primary Purpose of the Basic Economic Order Quantity Model

question 141

Multiple Choice

The primary purpose of the basic economic order quantity model shown below is Q* =

• A) to calculate the reorder point, so that replenishments take place at the proper time
• B) to minimize the sum of carrying cost and holding cost
• C) to maximize the customer service level
• D) to minimize the sum of setup cost and holding cost
• E) to calculate the optimum safety stock