Question
How realistic are the assumptions of the Economic Order Quantity (EOQ) model? Discuss how the issues of safety stock can be incorporated in EOQ and
How realistic are the assumptions of the Economic Order Quantity (EOQ) model? Discuss how the issues of safety stock can be incorporated in EOQ and re-order point (RP) while ordering inventory. Do you think the model is still used in practice? If not, what model is mostly used while ordering inventory?
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The economic orderquantity model considers the tradeoff between ordering cost and storage cost in choosing the quantity to use in replenishing item in...
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Accounting Information System
Authors: James A. Hall
7th Edition
978-1439078570, 1439078572
