You are talking with a manager about one of his employees, Tom. ...

[Sufayan.ah]

You are talking with a manager about one of his employees, Tom. The manager describes Tom as a person who has a strong desire to do the best possible job and put in the maximum effort to perform his assigned tasks. The manager is describing Tom's:
 
  A) abilities.
  B) capabilities.
  C) motivation.
  D) productivity level.

Question 2

In a short essay, explain how carrying costs and ordering costs change with order size in EOQ (economic order quantity) analysis.
 
  What will be an ideal response?

[amanda_14]

Answer to Question 1

Answer: C

Answer to Question 2

Answer: Carrying costs, such as money tied up in inventory, taxes, and storage, tend to increase when order size increases. Larger orders means that more inventory is on-site at any given time, and more inventory results in higher costs associated with keeping that inventory aroundcarrying costs. At the same time, larger orders drive ordering costs (paperwork, processing costs) down because needing to order less frequently means that the activities associated with ordering are kept to a minimum. The two types of costs, carrying costs and ordering costs, therefore, tend to go in opposite directions as order size changes. Finding Q, the optimum order size, is typically accomplished by graphically locating the point at which the carrying costs curve and the ordering costs curve intersect.