At the Optimal Order Quantity (EOQ),the Total Annual Inventory Cost

question 21

Multiple Choice

At the optimal order quantity (EOQ) ,the total annual inventory cost (TC) is given by ______.

• A)TC = (Annual demand/EOQ)× Ordering cost per order/2 + (EOQ)× Holding cost per unit per year
• B)TC = (Annual demand/EOQ)× Ordering cost per order + (EOQ/2)× Holding cost per unit per year
• C)TC = (Annual demand/EOQ)× Ordering cost per order/2 + (EOQ/2)× Holding cost per unit per year
• D)TC = (Annual Demand/EOQ)× Ordering cost per order + (EOQ)× Holding cost per unit per year

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Definitions:

Partially Reabsorbed

The process by which a substance, once secreted or excreted, is taken back into the body or a biological system, often referring to fluids or nutrients.

Sodium Ions

Positively charged ions of sodium, essential for conducting nerve impulses, muscle contraction, and maintaining fluid balance in the body.

Filtrate

The liquid that passes through a filter, separating it from suspended solids.

Bowman's Capsule

A cup-like structure in the kidney that encloses the glomerulus and is the beginning of the tubular component of the nephron.