1. Which of the following describes the economic order quantity (EOQ)?

a. It is associated with a pull inventory system.

b. It is the heart of a JIT purchasing system.

c. It minimizes total ordering and carrying costs.

d. It minimizes stock-out costs.

2. A JIT inventory management system maintains which of the following?

a. Goods should be pushed through the system on a fixed schedule based on anticipated demand.

b. Goods should be pulled through the system by present demand.

c. Total inventory costs are minimized by balancing setup and carrying costs.

d. Inventories are needed to avoid stock-out costs