Inventory planning and control Question:

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Will it effect the EOQ model, If you get a discount?

Inventory planning and control Interview Question
Inventory planning and control Interview Question

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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Do you know what is the formula of EOQ?What would happen if there is no savings or the models produce even results?