In the EPQ Model,if the Annual Demand in Units Is

question 41

Multiple Choice

In the EPQ model,if the annual demand in units is D,the cost per setup is K,and the optimal or economic production quantity is Q,then the total annual setup costs are given by ______.

• A)(D/Q)× K
• B)(Q/D)× K
• C)(K/Q)+ D
• D)(D/K)+ Q

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Definitions:

Resource Market

A marketplace where resources (such as labor, capital, and natural resources) are bought and sold, facilitating economic production.

Factors of Production

Resources used in the creation of goods and services, including land, labor, capital, and entrepreneurship.

Firms

Business organizations engaged in professional, commercial, industrial, or service activities.

Human Capital

The collection of capabilities, learning, and experiential wisdom available to a person or society, assessed based on their contribution in terms of value or expense to an organization or a nation.