Multiple Choice
If we are ordering materials from an outside vendor,then the total inventory-related cost on an annual basis is ______.
A) the sum of (total annual ordering cost) and (total annual holding cost) less the sum of (total annual stock-out cost) and (total annual materials purchase cost)
B) the ratio of the sum of total annual ordering cost and total annual holding cost to the sum of total annual stock-out cost and total annual materials purchase cost
C) the product of the sum of total annual ordering cost and total annual holding cost to the sum of total annual stock-out cost and total annual materials purchase cost
D) the sum of total annual ordering cost + total annual holding cost + total annual stock-out cost + total annual materials purchase cost
Correct Answer:

Verified
Correct Answer:
Verified
Q58: Holding costs are a linear function of
Q59: Which of the following statements is true
Q60: The optimal order quantity is an amount
Q61: The total annual holding cost is obtained
Q62: The setup cost to make carpets is
Q64: If the order quantity per order is
Q65: If you have total annual cost (TAC),total
Q66: Independent demand items are typically _.<br>A)finished products
Q67: Which of the following statements with regard
Q68: In the EPQ model,setup costs refer to