Which of the Following Statements Is True of the Economic-Order-Quantity

question 133

Multiple Choice

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

• A) It assumes purchasing costs are relevant because the cost per unit changes due to the quantity ordered.
• B) It assumes that quality costs are considered only to the extent that these costs affect ordering or carrying costs.
• C) It assumes that stockout costs are relevant even if no stockouts occur.
• D) It assumes that ordering costs and carrying costs are irrelevant.

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