The Economic Order Quantity (EOQ) model can be used to establish inventory policy. In the case of a manufacturer, the EOQ is called the Economic Lot Size (ELS) or Economic Production Quantity (EPQ). Which of the following statements about the ELS is incorrect? a.The objective of the ELS model is to minimize the sum of inventory carrying costs and the costs of production runs or setup costs. b.In the ELS model, the production rate is deemed to. be instantaneous. c.In the ELS model, the demand is assumed to occur at a constant rate over some period of time. d.The ELS model is used to maximize contribution margin or minimize costs given resource constraints. The Economic Order Quantity (EOQ) formula does not assume that a.demand is known. b.usage is uniform. c.the cost of placing an order is constant. d.the cost of inventory itself is constant. In the EOQ model, the return on capital that is foregone when it is invested in inventory is a(an) a.order cost. b.carrying cost. c.exclusion in the EOQ computation. d.irrelevant cost.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
The Economic Order Quantity (EOQ) model can be used to establish inventory policy. In the case of a manufacturer, the EOQ is called the Economic Lot Size (ELS) or Economic Production Quantity (EPQ). Which of the following statements about the ELS is incorrect?
a.The objective of the ELS model is to minimize the sum of inventory carrying costs and the costs of production runs or setup costs.
b.In the ELS model, the production rate is deemed to. be instantaneous.
c.In the ELS model, the demand is assumed to occur at a constant rate over some period of time.
d.The ELS model is used to maximize contribution margin or minimize costs given resource constraints.
The Economic Order Quantity (EOQ) formula does not assume that
a.demand is known.
b.usage is uniform.
c.the cost of placing an order is constant.
d.the cost of inventory itself is constant.
In the EOQ model, the return on capital that is foregone when it is invested in inventory is a(an)
a.order cost.
b.carrying cost.
c.exclusion in the EOQ computation.
d.irrelevant cost.
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