A firm is currently purchasing an item for inventory using the basic EOQ model. They plan on making the product themselves and will be using the EOQ model based on noninstantaneous receipt of inventory
If everything else stays the same, what changes should the firm expect?
A) EOQ decreases.
B) Average inventory level decreases.
C) Reorder point increases.
D) Safety stock increases.
Answer: B
Business
You might also like to view...
What function is a leader most likely to perform that a manager would not?
a. Controlling b. Organizing c. Planning d. Investigating e. Inspiring
Business
Suppose the Belgian government prohibits sale of cigarettes to people below 20 years of age. Who are likely to comprise the qualified available market for Dunhill, a manufacturer of herbal cigarettes in Belgium?
What will be an ideal response?
Business