Y5

6. How can managers use the results of A-B-C classification? a. List the major assumptions of the EOQ model. b. How would you respond to the criticism that EQQ models tend to provide misleading results because values of D, S, and Hare, at best, educated guesses? 8. Explain briefly how a higher carrying cost can result in a decrease in inventory. 9. What is safety stock, and what is its purpose? 10. Under what circumstances would the amount of safety stock held be large? Small? Zero