Which of the Following Statements About the Economic-Order-Quantity Decision Model

question 117

Multiple Choice

Which of the following statements about the economic-order-quantity decision model is FALSE?

• A)It assumes purchasing costs are relevant when the cost per unit changes due to the quantity ordered.
• B)It assumes quality costs are irrelevant if quality is unaffected by the number of units purchased.
• C)It assumes stockout costs are irrelevant if no stockouts occur.
• D)It assumes ordering costs and carrying costs are relevant.

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Definitions:

Pelvis

A basin-shaped structure in the skeleton located at the lower part of the trunk, composed of the hip bones, sacrum, and coccyx.

Fallopian Tube

Tubes that extend from either side of the uterus, through which eggs travel from the ovaries to the uterus.

Opening

An entrance or aperture in a structure that provides access or allows the passage of objects, fluids, or light.

Region

An area or division, especially part of a country or the world having definable characteristics but not always fixed boundaries.