Which of the Following Is an Advantage of Using the EOQ

question 59

Multiple Choice

Which of the following is an advantage of using the EOQ model?

• A) helps managers make decisions about when and how much of a product to order
• B) improving productivity and quality by reducing labor and equipment time
• C) provides information about which inventory items require the most attention
• D) increasing customer satisfaction by decreasing the time required to make and deliver the product or service

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Definitions:

Bank Capital

The financial resources held by a bank that acts as a cushion against potential losses, consisting of equity, retained earnings, and other reserves.

Assets

Resources owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.

Discount Rate

The interest rate charged to commercial banks and other depository institutions on loans received from the central bank's discount window.

Federal Funds Rate

The interest rate at which depository institutions lend reserve balances to other depository institutions overnight on an uncollateralized basis.