Which of the following would not be included in inventory carrying cost?
A) insurance expense for the inventory
B) cost of shelf space
C) cost of inventory
D) opportunity cost of capital for inventory investment
Answer: C) cost of inventory
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An Asian buyer meets with a broker and asks to be shown homes. If she doesn't ask to see homes in areas with no Asian residents, the broker:
A. may assume that she is not interested in areas with other Asian residents B. may assume that she is not interested in areas without other Asian residents C. should choose homes for showing as the broker would for any other customer D. has no obligation to show her homes in areas where no other Asians live
What does the POQ interval equal?
A) the number of periods of average demand covered by the safety stock B) the same number of periods that are on the "not to be rescheduled" side of the time fence C) EOQ / maximum gross requirement D) the number of periods until the incoming projected on hand runs out E) EOQ / average demand per period