Question

QUESTION 1 Which of the following would not be considered a potential component of a firm's holding costs? set-up costs opportunity cost of inventory investment borrowing costs warehousing costs cost of obsolescence QUESTION 2 Which of following statements are true when comparing aggregate planning strategies? L "Chase" aggregate plans generally require more inventory stock-piling than "Leve aggregate plans. Il. "Level" aggregate plans generally yield better utilization of resources, and thus are associated with greater workforce stability. Il. "Chase aggregate plans would be more attractive to make-to-order firms because they tend to minimize finished goods inventory. Il and III l and Ill Ill only l only I, Il and IlIl

Answer 1

Question 1

The answer is "Set-up costs".

Holding cost or carrying cost is nothing but percentage of inventory value which include taxes, insurance, cost of storage, opportunity cost, depreciation, cost of good damaged, labor cost, utilities cost and the cost of capital for the company.