25. Economic order quantity models and two-bin system are commonly used
controls for a company's materials function. Those controls primarily relate to
what part of the cycle?
26. The selling price of the product is relatively high and the purchase cost of the
product is relatively low. In this situation:
27. The Stewart Company uses the economic order quantity model for inventory
management. A decrease in which one of the following variables would
increase the EOQ?
Cost per order
D. Carrying costs
To increase EOQ, annual demand and cost per order should be increase and
carrying cost per unit should be decreased. Hence, choice-letter "d" is
correct. A decrease in carrying costs increases the EOQ.