The EOQ Formula Simply Balances the Ordering Cost and the Carrying

question 132

Multiple Choice

The EOQ formula simply balances the ordering cost and the carrying cost of the small business owner's inventory so that total costs are ________.

• A)optimized
• B)minimized
• C)maximized
• D)calculated

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Definitions:

Basal Ganglia

A group of structures in the brain that help control movement, coordination, and learning.

Frontal Lobes

Portions of the brain located behind the forehead that are responsible for complex cognitive functions, including decision making, problem solving, and controlling behavior.

Decision Making

The cognitive process of choosing between different alternatives or options to reach a conclusion or solution.

Reasoning

The process of thinking about things in a logical, rational way, in order to form conclusions, judgments, or inferences.