Question

Which of the following is the symbol used in the textbook for the cost of placing an order in the fixed-order-quantity inventory model?

O S
O C
O TC
O Q
O H

Answer 1

The symbol used in the textbook for the cost of placing an order in the fixed-order-quantity inventory model is 'O'. None of the options are correct.

Step-by-step explanation:

In the fixed-order-quantity inventory model, the symbol used in the textbook to represent the cost of placing an order is O. This symbol indicates the expenses involved in ordering new inventory, such as administrative costs, paperwork, and any other costs associated with the procurement process.

For example, if a company needs to order a new batch of products from its supplier, it will incur certain costs for placing that order. These costs are represented by the symbol O in the textbook.