The Economic Order Quantity Approach States That Inventory Order Sizes

question 69

Multiple Choice

The economic order quantity approach states that inventory order sizes should be determined in which one of the following manners?

• A)By dividing annual item sales by the carrying cost per item and multiplying by 2
• B)By computing the average number of items sold each month
• C)By equating restocking costs with carrying costs
• D)By dividing the inventory into various groups based on the value per item
• E)By computing the amount of the derived demand

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