Business, 09.10.2021 22:00 Aviannakelly
A product meets all requirements of an EOQ model, i. e., known and constant demand and a fixed delivery lead-time. You determined the optimal order quantity Q* for your product using the EOQ model. Using Q*, total relevant inventory management costs comes out to be $1,400 annually. Given only this information: (assume 4 quarters/year)
A. I know that total annual expenditures on ordering costs are $800.
B. I know that total quarterly expenditures on holding costs are $700.
C. I know that an order is placed quarterly.
D. I know that total annual expenditures on holding costs are $1,600.
D. None of the above are true.
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A product meets all requirements of an EOQ model, i. e., known and constant demand and a fixed deliv...
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