The result of the economic order quantity formula indicates the
The EOQ model is a deterministic model that calculates the ideal order (or production lot) quantity given specified demand, ordering or setup costs, and carrying costs. The model minimizes the sum of ,,inventory carrying costs and either ordering or production setup costs.
The first step in the sales planning process is to
Sales planning is a starting point for many other plans. The resources required, revenues to be earned, and costs to be incurred depend on sales. The sales plan of an operating unit should include as much specific information from that unit's management as possible, but must conform to the strategic plans or corporate management. Thus, top management must provide a context within which operational managers can prepare their plans. Corporate support include economic forecasts, overall market sales forecasts, and capital budgets.
An inventory management technique designed to minimize inventory investment by having materials arrive at the time they are needed for use is known as
A just-in-time (JIT) inventory management system limits the output of each manufacturing operation to the demand of the next operation. Shipment of raw materials from vendors are scheduled to arrive ''just in time'' to be used in the production process. Inventory storage is considered a nonvalue-adding activity, and raw materials on hand are thus kept to a minimum.
Which of the following is not an attribute of a probability distribution?
In a probability distribution, the probability of any event(s) is bounded by U (no chance) and I (certainty). The total probability of all possible outcomes must add up to 1. Also, a probability distribution models a random variable through the use of a formula or graph that provides the probability associated with the occurrence of certain values of the random variable. If only one outcome is possible, the variable is not random but rather constant and known with certainty.
In the decision making process, differential cost is a (n)
A differential cost is one that changes among alternative courses of action.
