dolution

If we are ordering materials from an outside vendor, then the total inventory-related cost on an annual basis is ______.

a.

the product of the sum of total annual ordering cost and total annual holding cost to the sum of total annual stock-out cost and total annual materials purchase cost

b.

the sum of total annual ordering cost and total annual holding cost less the sum of total annual stock-out cost and total annual materials purchase cost

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c.

the ratio of the sum of total annual ordering cost and total annual holding cost to the sum of total annual stock-out cost and total annual materials purchase cost

d.

the sum of total annual ordering cost + total annual holding cost + total annual stock-out cost + total annual materials purchase cost

 
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