Economic Order Quantity (EOQ)includes Several Variables That Must Be Taken

question 91

Multiple Choice

Economic Order Quantity (EOQ) includes several variables that must be taken into consideration when calculating the optimal order size.One variable,the costs associated with holding inventory,is referred to as

• A)ordering costs.
• B)carrying costs.
• C)the reorder point.
• D)stockout costs.

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Definitions:

Economic Activities

Activities related to the creation, dispersal, and use of products and services in an economic system.

Personal Guarantee

This is a legal promise made by an individual to repay the borrowing of a business entity in case it fails to do so, thus personally ensuring the debt.

Economic Performance

Economic performance refers to the evaluation of how effectively an economy or a specific entity manages its resources and meets its objectives, often measured in terms of productivity, efficiency, and growth.

Informational Needs

The specific data and insights required by individuals or organizations to make informed decisions.