E&OE is trying to minimize its inventory costs, which are extremely high. The company has realized that it can achieve this by maintaining a near-zero inventory and producing only once a product is ordered
Which of the following will be true for E&OE?
A) Short production runs will be more expensive than longer ones.
B) Setup and order-processing costs will be high.
C) The order point will be high.
D) Order-processing costs will be lower than the inventory-carrying costs.
E) E&OE can reduce the average cost per unit by producing a long run.
D
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If the amount of a loan is $13,500 and the interest rate is 6 percent what is the amount of the semiannual interest payment?
A) $596.55 B) $405.00 C) $810.00 D) $202.50
Which of the following is NOT a limitation of the use of learning curves?
A) Any change in personnel, design, or procedure can alter the learning curve. B) Time measurements on early units completed must be accurate. C) The culture of the workplace may alter the learning curve. D) Direct labor and indirect labor may not follow the same learning curves. E) All of these are limitations of learning curves.