The Primary Purpose of the Basic Economic Order Quantity Model $\sqrt { \frac { 2 \cdot D \cdot S } { H } }$

question 112

Multiple Choice

The primary purpose of the basic economic order quantity model shown below is Q? = $\sqrt { \frac { 2 \cdot D \cdot S } { H } }$

• 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.

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Definitions:

Behaviour

Actions or reactions of an individual or group in response to external or internal stimuli.

Instrumental Conditioning

A learning process in which the consequences of a behavior influence the likelihood of its recurrence, emphasizing rewards and punishments.

Attitude

An inclination in psychology marked by assessing an entity with a certain level of like or dislike.

Buckley's

A brand known for its line of over-the-counter medications, notable for their pronounced taste and effectiveness claim.