The Objective of the EOQ with Quantity Discounts Model Is

question 27

Multiple Choice

The objective of the EOQ with quantity discounts model is to

• A)determine the minimum order quantity required for the maximum discount.
• B)balance annual ordering and holding costs.
• C)minimize annual purchase cost.
• D)minimize the sum of annual carrying,holding,and purchase costs.

---

Definitions:

Cost Producing

The total expenses incurred in manufacturing a product or delivering a service.

Marginal Product

The additional output gained by employing one more unit of a given input.

Resource Maximization

It is the technique or strategy of optimally utilizing resources to achieve the highest possible output or efficiency.

Least-costly Combination

A perfect combination of resources that lowers the production cost while reaching a target output level.