Inventory Manager Question:
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Tell me if I get a discount will it effect the EOQ model?

Answer:

Yes, a discount will cause the basic EOQ model to fail. To use a discount in determine a EOQ you must use the EOQ model with quantity discounts.

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Please explain what do the letters in the EOQ and stocking cost formula stand for?Tell us do I need to recompute stocking costs for the EOQ level?