ERP Was Originally Used in the ________ Domain

question 18

Multiple Choice

ERP was originally used in the ________ domain.

• A) accounting
• B) customer support
• C) manufacturing
• D) human resources

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Definitions:

EOQ Model

Economic Order Quantity Model, a formula used in inventory management to determine the optimal order size that minimizes the total cost of inventory.

Ordering Cost

The total expenses incurred in placing an inventory order, which can include costs for paperwork, communication, transportation, and handling.

Holding Cost

The expenses associated with storing unsold goods or materials, including warehousing, insurance, depreciation, and opportunity costs.

Optimal Order Quantity

Refers to the quantity of inventory that minimizes the total costs of inventory management, including ordering and holding costs.