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If We Are Ordering Materials from an Outside Vendor,then the Total

Question 63

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

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