The economic order quantity, or EOQ, is the order quantity or purchase quantity that minimizes the total annual cost of ordering the item and keeping it in stock.
Which of the following is associated with EOQ?
Order quantity must be balanced in order to obtain a minimum total cost, and this quantity is known as the Economic Order Quantity (EOQ). There are primarily two costs associated with inventory: the ordering cost and the inventory carrying cost.
Which of the following is are assumptions in EOQ technique Mcq?
The Basic EOQ model makes the following assumptions: Product cost is fixed, lead time is zero, usage rate is constant, and inventory cost is fixed.
Which of the following cost is associated with inventories Mcq?
| Q. | Which of the following cost is associated with inventories? |
|---|---|
| A. | carrying cost |
| B. | ordering cost |
| C. | over stocking cost |
| D. | all of these |
The economic order quantity, or EOQ, is a calculation designed to find the optimal order quantity for businesses to minimize logistics costs, warehousing space, stockouts, and overstock costs. The formula is: EOQ = square root of: [2(setup costs)(demand rate)] / holding costs. The term optimum lot size is also used to refer to the economic order quantity.
Which of the following is part of the determination of EOQ?
Mark Achin sells 3,600 electric motors annually; which of the following is a factor in determining EOQ?