Short-run and long-run ordering costs

1. What is the difference between short-run and long-run carrying costs?

2. What type of company would use an EOQ system?

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3. What type of company would use a JIT system?

1. When the EOQ formula is solved, what does the result indicate?

2. How do you determine the reorder point in an EOQ system?

3. What are the goals of a JIT system?

4. How does the adoption of a JIT system impact the company/supplier relationship?

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