Inventory and modeling statements: select the correct set Evaluate each statement about inventory and modeling approaches: A. A–B–C analysis is based on Pareto's principle. B. Simulation can be used for inventory control. C. The basic EOQ formula ignores demand variability. Choose the correct option.
Mechanical Engineering
Industrial Engineering and Production Management
Difficulty: Easy
Choose an option
-
AOnly A is correct
-
BA and B are correct
-
CB and C are correct
-
DAll of the above
Answer
Correct Answer: All of the above
Explanation
Verification• A: ABC classifies items by annual usage value (Pareto/80–20). ✔• B: Simulation models stochastic demand/lead time for policy testing. ✔• C: Classical EOQ assumes constant demand/lead time; it ignores variability. ✔
Final AnswerAll of the above