In the EOQ model,carrying costs of inventory include
A) the required rate of return on inventory.
B) wages for warehouse workers.
C) costs associated with inventory shrinkage.
D) B and C.
E) all of the above.

Question

Quizplus · Accepted Answer

Carrying costs of inventory include both wages for warehouse workers (B) and costs associated with inventory shrinkage (C). The required rate of return on inventory (A) is a ordering cost, not a carrying cost. Therefore, options A, B, and C are incorrect, and the correct option is D.

In the EOQ Model,carrying Costs of Inventory Include