1.) In the Economic Order Quantity calculation, which two costs are treated the same? That is, which two would go in the same place in the formula?

a- Price of the item per unit and setup cost

b- Holding cost and ordering cost

c- Storage cost and price of the item per unit

d- Setup cost and ordering cost

e- Price of the item per unit and holding cost

2.) In both EOQ and EPQ we determine the optimal quantity to order. This order quantity balances which two types of costs?

a- salvage and discount

b- setup and order

c- order and discount

d- setup and holding

e- purchase and setup

3.) Every Reorder Point formula consists of two things added together. The first thing is the __________ , and the second thing is the ____________.

a- customer service level, stockout risk

b- order quantity, order interval

c- demand over the lead time, safety stock

d- minimum inventory level, order price