The costs of setting up a production run or placing an order are called:

A) Carrying costs.
B) Restocking costs.
C) JIT costs.
D) EOQ costs.
E) Derived demand costs.

Question

The costs of setting up a production run or placing an order are called:A)  Carrying costs.B)  Restocking costs.C)  JIT costs.D)  EOQ costs.E)  Derived demand costs.

Matias Madriaga · Accepted Answer

Final Answer : B, Explanation :  Restocking costs are associated with the expenses involved in setting up a production run or placing an order, including costs related to ordering, receiving, and processing inventory.

The costs of setting up a production run or placing an order are called:

A) Carrying costs.
B) Restocking costs.
C) JIT costs.
D) EOQ costs.
E) Derived demand costs.

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Learning Objectives

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