Question: 5. What costs are considered in the basic EOQ calculation? a. annual purchasing costs + annual holding costs b. setup/ordering costs per order + annual
5. What costs are considered in the basic EOQ calculation?
a. annual purchasing costs + annual holding costs
b. setup/ordering costs per order + annual holding cost per item
c. annual purchasing costs + annual ordering costs + annual holding costs + annual shortage costs
d. annual ordering costs + annual holding costs + annual shortage costs
e. annual ordering costs per item + holding costs per order
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
