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11. EOQ is the order quantity that========== over our
planning horizon
a) Minimizes total ordering costs
b) Minimizes total carrying costs
c) Minimizes total inventory costs
d) The required safety stock
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Answer Posted / s.k. pradhan
Eoq is the technique to determine the most profitable order
quantity with minimum cost.So it minimize total inventory
costs.i.e. (c)
| Is This Answer Correct ? | 59 Yes | 3 No |
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3. You are required to show the effect of each of the following changes on profit and Break-Even-Volume from the information given below: Sales 50,000 units Rs. 5.00 per unit Variable cost Rs. 3.00 per unit Fixed cost Rs. 70,000 Changes: (i) Price changes by 20%. (ii) Volume decreases to 40,000 units. (iii) Variable cost increases to Rs 3.50 per unit. (iv) Fixed cost decreases by 10%.
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