For the Basic EOQ Model,which of the Following Relationships Is

question 35

Multiple Choice

For the basic EOQ model,which of the following relationships is not true?

• A)The optimal number of orders per year equals annual demand divided by the EOQ.
• B)The reorder point equals daily demand multiplied by the lead-time in days,excluding safety stock.
• C)Average inventory level equals one-half the order size.
• D)The average dollar level of inventory equals unit price multiplied by order quantity.
• E)At EOQ,annual ordering cost equals annual carrying cost.

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Definitions:

Fiduciary

A person or organization that acts on behalf of another person or persons, putting their clients' interest ahead of their own, with a duty to preserve good faith and trust.

Agency Relationship

The association between one party and an agent who acts on behalf of that party.

Electronic Contracts

Legal agreements that are created, signed, or exchanged electronically, such as those accepted via click-through agreements on websites.

Respondeat Superior

A legal doctrine that holds an employer or principal legally responsible for the wrongful acts of an employee or agent, if such acts occur within the scope of the employment or agency.