The Primary Purpose of the Basic Economic Order Quantity Model

question 10

Multiple Choice

The primary purpose of the basic economic order quantity model is

• A)to calculate the reorder point,so that replenishments take place at the proper time
• B)to minimize the sum of carrying cost and holding cost
• C)to maximize the customer service level
• D)to minimize the sum of setup cost and holding cost
• E)to calculate the optimum safety stock