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Which of the following costs does the EOQ minimise?
Which of the following costs does the EOQ minimise?A . Total cost of safety stock B. Total cost of ordering inventory C. Total cost of annual inventory cost D. Total cost of carrying stockView AnswerAnswer: C Explanation: Economic order quantity (EOQ) was developed in 1913 by Ford W. Harris and...
The ABC approach involves classifying inventory items by unit cost, with expensive items classified as ‘A' items and low cost items classified as ‘C' items. Is this statement true?
The ABC approach involves classifying inventory items by unit cost, with expensive items classified as ‘A' items and low cost items classified as ‘C' items. Is this statement true?A . Yes, 'A' items represent approximately 20% of total unit prices B. Yes, 'C' items with the lowest unit prices are...
To test the product durability
To test the product durabilityA . 1 and 2 only B. 3 and 4 only C. 2 and 3 only D. 1 and 4 onlyView AnswerAnswer: C Explanation: It would be really convenient if we could just hand our products directly to the customers, but that’s not possible. Packaging needs...
