Question: 1) The basic EOQ model minimizes the sum of the annual ordering cost and Answer: ______ a) purchasingcost. b) shortage cost. c) holding cost. d)

1) The basic EOQ model minimizes the sum of the annual ordering cost and Answer: ______

a) purchasingcost.

b) shortage cost.

c) holding cost.

d) qualitycost.

2) A fashion clothes retailer uses the newsvendor model to manage their inventory. Based on their calculation of optimal order quantity (Q*), they reached a value of expected sales (ES) equal to 300 items and a positive value for expected lost sales (LS). Which of the following is definitely false?

a)Q*<300.

b) Exp. Leftover > 0

c) Q*>300.

d) None of the above.

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