Which of the Following Is the Correct Mathematical Expression to Calculate

question 19

Multiple Choice

Which of the following is the correct mathematical expression to calculate annual relevant ordering costs?

• A) Demand in units for a specified period / (Relevant ordering cost per purchase order × Size of each order)
• B) Size of each order × Relevant ordering cost per purchase order / Demand in units for a specified period
• C) (Demand in units for a specified period / Size of each order) × Relevant ordering cost per purchase order
• D) (Demand in units for a specified period - Size of each order) × Relevant ordering cost per purchase order

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Definitions:

Containers On Flatcars (COFC)

A type of intermodal freight transport where shipping containers are carried on railroad flatcars for part of their journey.

Trailers On Flatcars (TOFC)

A freight system where trailers are transported on railway flatcars, combining road and rail transportation.

Containers On Marine Vessel (COMV)

Refers to the standard large containers used for shipping goods internationally by sea, placed and transported on a marine vessel.

Just-In-Time System

A supply chain management system designed to decrease waste and increase efficiency by receiving goods only as they are needed in the production process.