What Inventory Factor May Be Omitted from the Basic EOQ

question 6

Multiple Choice

What inventory factor may be omitted from the basic EOQ derivation because it is a constant?

• A)Annual order-processing cost
• B)Annual purchase cost of goods
• C)Annual capital cost
• D)Annual setup costs
• E)all of these

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Definitions:

Insoluble

A characteristic of a substance that cannot dissolve effectively in a particular solvent.

Silver Acetate

A chemical compound with the formula AgC2H3O2, used in plating and as a photographic agent.

NaCl

Sodium chloride, commonly known as table salt, an ionic compound consisting of sodium and chloride ions.

AgCl

Silver chloride, a white crystalline solid that is photosensitive and less soluble in water.