How Can the EPQ Model Be Economically Reconciled with Just-In-Time

question 45

Multiple Choice

How can the EPQ model be economically reconciled with just-in-time (JIT) production?

• A) Reduce annual demand (D).
• B) Increase annual holding cost per unit (H).
• C) Decrease ordering cost (S).
• D) Increase annual holding cost per unit (H) and Decrease ordering cost (S).
• E) The two cannot be reconciled.

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Definitions:

Current Yield

The yearly earnings from interest or dividends, when divided by the security's current market price.

Capital Gains Yield

Results from changing prices and is calculated as (P1 - P0)/P0, where P0 is the beginning-of-period price and P1 is the end-of-period price.

Yield To Maturity

The total return anticipated on a bond if it is held until the end of its lifetime.

Current Yield

Current yield is a financial term used to describe the annual income (interest or dividends) earned from an investment, expressed as a percentage of the current price of the security.