Which of the Following Would NOT Be a Part of an EOQ

question 325

Multiple Choice

Which of the following would NOT be a part of an EOQ model of inventory management?

• A) Shortage costs.
• B) Carrying costs.
• C) Bond yields.
• D) Reorder points.
• E) Safety stocks.

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Definitions:

Customer Inquiries

Any form of communication from customers seeking information about products, services, or the company.

Sales Order

A document issued by a business to a customer, confirming the sale of goods or services under specified terms.

Economic Order Quantity

The optimal quantity of stock to order at one time, considering holding costs and ordering costs, to minimize total inventory costs.

Safety Stock

Additional inventory kept on hand to prevent stockouts caused by fluctuations in demand or supply delays.