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The economic order quantity (EOQ) assumes: A.) Demand is fairly stable B.) Holding costs are zero C.) The quantity will always be one full truck load D.) Several products can be ordered as a set

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The economic order quantity (EOQ) assumes:

 

A.) Demand is fairly stable

 

B.) Holding costs are zero

 

C.) The quantity will always be one full truck load

 

D.) Several products can be ordered as a set

✅ Answers (1)

0
Private answer
  • ) Demand is fairly stable

Explanation:

The economic order quantity is designed to reduce the total cost of inventory. EOQ is designed for environments with a stable demand, certain, or when the quantity discounts are minimized as much as possible. There are several reasons why EOQ is rarely used besides its unique usability, among the reasons is that EOQ is difficult to implement as well as capture the required data elements.

 

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Answered on June 26, 2020 4:23 pm

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