Which of the Following Statements Is/are Correct

question 7

Multiple Choice

Which of the following statements is/are correct?
i. The economic order quantity determines the optimum order size for individual inventory items.
ii. The economic order quantity cannot be used in a manufacturing organisation.
iii. The economic order quantity minimises the sum of the ordering and carrying costs.

• A) i
• B) ii
• C) i and iii
• D) All of the given answers

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Definitions:

Retailers

Businesses or persons that sell goods directly to consumers.

Manufacturers

Companies or people that produce finished goods from raw materials through the use of various processes, equipment, and operations.

Wholesaler

A person or company that buys goods in large quantities from producers and sells them in smaller quantities to retailers or other businesses, not to the general public.

Retailer

A business or individual that sells goods directly to consumers for personal or household consumption.