1.

Tell Me What Does Eoq Make Work For Inventory Control?

Answer»

The EOQ works if its four assumptions match the case it is used on. The assumptions are:

  • Annual demand, carrying costs and ordering costs can be ESTIMATED.
  • INVENTORY LEVEL is divided by 2, no safety stock, goods used uniformly and are gone by next order.
  • Stock-out, CUSTOMER RESPONSIVENESS and other costs not considered.
  • No quantity discounts.

The EOQ works if its four assumptions match the case it is used on. The assumptions are:


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