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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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