Question
Which of the following statements is true of traditional purchasing? A. The optimal safety-stock level is the quantity of safety stock that minimizes the sum
Which of the following statements is true of traditional purchasing?
A. | The optimal safety-stock level is the quantity of safety stock that minimizes the sum of annual relevant stockout and carrying costs. | |
B. | Traditional purchasing is guided by the EOQ model because that model emphasizes the tradeoff between relevant carrying and ordering costs. | |
C. | Only disadvantage of JIT purchasing is the higher level carrying and inspection costs. | |
D. | In traditional purchasing, raw materials (or goods) are purchased so that products are delivered just when needed for production or sales. |
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