The Primary Purpose of the Basic Economic Order Quantity Model

question 65

Multiple Choice

The primary purpose of the basic economic order quantity model shown below is Q∗ =

• A)to calculate the reorder point,so that replenishments take place at the proper time.
• B)to minimize the sum of carrying cost and holding cost.
• C)to maximize the customer service level.
• D)to minimize the sum of setup cost and holding cost.
• E)to calculate the optimum safety stock.

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