WGU- C720, Exam review Questions and answers, VERIFIED. Operational Stategies

WGU- C720, Exam review Questions and answers, VERIFIED. Operational Stategies Module 1,2,12, 16 - Questions Main Objectives: how a business achieves organizational goals & competitive advantage through operations & inventory management Inventory Models EOQ EPQ QDM (Purpose of EOQ and EPQ is to minimus costs of ordering/ holding inventory Holding/Carrying Costs The costs of holding inventory; includes costs for storage space, interest paid on borrowed money to finance the inventory, and any losses incurred due to damage or obsolescence. Economic Order Quantity (EOQ) costs for ordering/holding inventory per order Finished goods *Demand is known *cost per unit not dependent on quantity * Entire order delivered at once when holding goes up, ordering goes down & vice-versa EOQ = intersection point where total annual variable costs for holding and ordering inventory coincide. Economic Production Quantity (EPQ