In a Periodic Review System, If You Are Basing Your

question 109

Multiple Choice

In a periodic review system, if you are basing your time between orders on the EOQ, what should be its length in weeks?

• A) EOQ / 52
• B) EOQ / average weekly demand
• C) average weekly demand / EOQ
• D) 52 / EOQ
• E) (EOQ)(average weekly demand)

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Definitions:

Trading Partner

A country or organization which engages in international trade with another entity, typically exchanging goods, services, or information.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than its trading partners, forming the basis of international trade.

Exporting Nation

A country that sells goods and services to other countries, resulting in a net inflow of funds from international trade.