If Annual Demand Increases by 100%, the Average Inventory Held

question 75

Multiple Choice

If annual demand increases by 100%, the average inventory held in a system governed by the EOQ model is:

• A)increased 100%.
• B)decreased by 100%.
• C)decreased by 50%.
• D)increased by 40%.

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Definitions:

Necessaries

Goods or services that are essential for someone’s maintenance and welfare according to their status in life and their requirements at the time of contract.

Credit

The granting of money or something of value with the expectation of repayment, or the reputation for solvency and reliability that allows an entity to borrow.

Revenue Opportunities

Potential scenarios or strategies that can lead to increased income or profits for a business or organization.

Public Utility Corporation

A company that provides essential public services, such as water, electricity, and natural gas, regulated by government entities.