What Inventory Factor May Be Omitted from the Basic EOQ

question 6

Multiple Choice

What inventory factor may be omitted from the basic EOQ derivation because it is a constant?

• A)Annual order-processing cost
• B)Annual purchase cost of goods
• C)Annual capital cost
• D)Annual setup costs
• E)all of these

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Definitions:

Expectancy

The belief or anticipation that something will happen in the future, often influencing behavior towards achieving it.

Instrumentality

In motivation theory, the perceived relationship between performance and the attainment of certain outcomes, meaning one's belief that performing at a certain level will lead to desired rewards.

Valence

The intrinsic attractiveness or aversiveness of an event, object, or situation.

Alderfer's ERG Theory

A motivational theory proposed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth, suggesting that more than one need may motivate at the same time.