Inventory planning and control Question:
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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.
☛ 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.
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