Optimal Order Quantities Exist When the Order-Processing Cost Per Unit

question 17

Multiple Choice

Optimal order quantities exist when the order-processing cost per unit and inventory-carrying cost per unit curves ________.

• A) increase to 1
• B) decrease to less than 1
• C) intersect
• D) equal each other
• E) equal zero

---

Definitions:

Dial Indicator

A precision measuring tool used to measure small distances and angles with high accuracy, often in mechanical processes for alignment or calibration.

Spacer Ring

A mechanical component used to fill the gap or maintain a specified distance between two parts in an assembly.

Dynamic Balancing

The process of balancing parts or assemblies while they are in motion, aiming to distribute mass evenly to avoid vibrations.