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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Definitions:

Cod Fishery

The commercial fishing activity aimed at catching cod, a type of fish that has historically been vital to the economies of several northern countries.

Canadian Government

The federal administration of Canada, operating under a parliamentary system within a constitutional monarchy.

Eastern Canada

Eastern Canada is the region of Canada comprising provinces like Ontario, Quebec, Newfoundland and Labrador, New Brunswick, Nova Scotia, and Prince Edward Island, known for its distinct cultural and geographical features.

Global Catch

The total mass of fish and other sea animals captured from the world's water bodies each year.