The primary role of cycle inventory is to allow different stages in the supply chain to
A: purchase product in lot sizes that maximize the sum of the material, ordering, and holding cost.
B: purchase product in lot sizes that minimize the sum of the material, ordering, and holding cost.
C: sell product in lot sizes that maximize the sum of the material, ordering, and holding cost.
D: sell product in lot sizes that minimize the sum of the material, ordering, and holding cost.
E: none of the above
A: purchase product in lot sizes that maximize the sum of the material, ordering, and holding cost.
B: purchase product in lot sizes that minimize the sum of the material, ordering, and holding cost.
C: sell product in lot sizes that maximize the sum of the material, ordering, and holding cost.
D: sell product in lot sizes that minimize the sum of the material, ordering, and holding cost.
E: none of the above
举一反三
- The total annual cost is the sum of annual material cost, annual order cost, and annual holding cost, and is given as TC = CD + (D/Q)S + (Q/2)hC.
- 中国大学MOOC: A company determines its order quantity for a raw material by using the Economic Order Quantity (EOQ) model. What would be the effects on the EOQ and the total annual holding cost of a decrease in the cost of ordering a batch of raw material?
- Whether the optimal level of product availability is high or low depends on where a particular company believes they can A: minimize cost. B: maximize revenue. C: maximize profits. D: maximize product availability. E: all of the above
- (EOQ) model. What would be the effects on the EOQ and the total annual ordering cost of an increase in the annual cost of holding one unit of the component in stock? A: EOQTotal annual ordering cost LowerHigher B: HigherLower C: LowerNo effect D: HigherNo effect
- Increasing the lot size or cycle inventory often decreases the cost incurred by different stages of a supply chain.