A Firm Uses the Extended Economic Order Quantity Approach to Inventory

question 40

Multiple Choice

A firm uses the extended economic order quantity approach to inventory management.Which one of the following inventory levels is considered to be the minimum inventory level given this approach?

• A)safety stock plus the reorder quantity
• B)50 per cent of the reorder quantity
• C)zero inventory
• D)safety stock level
• E)reorder point level

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Definitions:

Work Ethic

The principle that hard work is intrinsically virtuous or worthy of reward.

Job Enrichment

A method of motivating employees by providing them with more variety, autonomy, and responsibility in their roles.

Task Identity

The degree to which a job requires completion of a whole and identifiable piece of work.

Employees' Commitment

The level of enthusiasm and dedication an employee has towards their job and company.