Which One of the Following Statements Regarding the Economic Order

question 103

Multiple Choice

Which one of the following statements regarding the economic order quantity (EOQ) is TRUE?

• A) When the interest rate drops, the inventory holding cost decreases and the EOQ decreases.
• B) If an order quantity is larger than the EOQ, the annual holding cost for cycle inventory exceeds the annual ordering cost.
• C) The EOQ model combines several different item orders to the same supplier.
• D) The EOQ model assumes a variable demand pattern.

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Definitions:

Physiological Need

Basic physical requirements for human survival, such as air, water, food, shelter, and sleep. These needs are the first level in Maslow's hierarchy of needs.

Basic Bodily Requirement

Fundamental needs such as food, water, and shelter that are essential for survival.

Complex Behavior

Actions or conduct that involve multiple factors, including cognitive, social, and emotional components, making them more sophisticated than simple reflexes.

Homeostasis

The process by which living organisms regulate their internal environment to maintain stable, life-supporting conditions.