Inventory planning and control Question: Download Inventory planning and control PDF
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.
| Previous Question | Next Question |
| Tell me how would you determine the numbers to use in the EOQ formula? | Inventory planning and controlling questions? |