Inventory Management MCQs

The EOQ is the quantity that minimises the sum of the annual order costs and the annual holding costs. The annual holding costs equal the annual order costs at this level

April 27, 2022

8 Views

The EOQ is the quantity that minimises the sum of the annual order costs and the annual holding costs. The annual holding costs equal the annual order costs at this level

Q. The EOQ is the quantity that minimises the sum of the annual order costs and the annual holding costs. The annual holding costs equal the annual order costs at this level.

A. True

B. False

Answer: True

The EOQ is the quantity that minimises the sum of the annual order costs and the annual holding costs. The annual holding costs equal the annual order costs at this level

Previous

In the economic order quantity or EOQ model the equation D/Q calculates

The EOQ is the quantity that minimises the sum of the annual order costs and the annual holding costs. The annual holding costs equal the annual order costs at this level

Next

In the economic order quantity or EOQ model the equation (D/Q) × CO calculates

Related Articles

A publishing house purchases 2,000 units of a particular item per year at a unit cost of ₹ 20

A publishing house purchases 2,000 units of a particular item per year at a unit cost of ₹ 20. The ordering cost per order is ₹ 50 and the inventory carrying cost is 25%. How will be the total cost if company decides to buy in EOQ?

A manufacturer requires 9,600 units of a certain component annually

A manufacturer requires 9,600 units of a certain component annually. This is currently purchased from a regular supplier at ₹ 50 per unit. The cost of placing an order is ₹ 60 per order and the annual carrying cost is ₹ 5 per price. Annual ordering plus carrying cost = ?

The annual demand of a certain component bought from the market is 1,000 units

The annual demand of a certain component bought from the market is 1,000 units. The cost of placing an order is ₹ 60 and the carrying cost per unit is ₹ 3 p.a. The Economic Order Quantity for the item is ?

Cost of abnormal wastage is

Cost of abnormal wastage is

We will be happy to hear your thoughts

Leave a reply Cancel reply

You must be logged in to post a comment.