With the HMMS model the inventory cost curve takes into account stock on-hand and backorders,but also _____ costs associated with changing production from one product to another.
A)overtime
B)hiring
C)firing
D)set-up

Question

Quizplus · Accepted Answer

The HMMS model includes set-up costs associated with changing production from one product to another. This cost is included in the inventory cost curve to help determine the optimal order quantity and reorder point. Overtime, hiring, and firing costs are not directly related to the set-up costs and are not typically included in the HMMS model.

With the HMMS Model the Inventory Cost Curve Takes into Account