Question: The primary purpose of the basic economic order quantity model shown below is Q * * = 2 * D * S H * *
The primary purpose of the basic economic order quantity model shown below is
to minimize the sum of carrying cost and holding cost
to calculate the reorder point, so that replenishments take place at the proper time
to minimize the sum of setup cost and holding cost
to calculate the optimum safety stock
to maximize the customer service level
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