Respuesta :
If a firm must order by the case, case hold 80 units, and the EOQ is 100, then 1 or 2 cases order quantities should the firm consider.
- The economic order quantity (EOQ) is a company's ideal order quantity that satisfies demand while lowering its overall costs associated with placing orders, receiving deliveries, and maintaining inventory.
- The EOQ formula functions best when demand, ordering, and holding costs are stable over time.
- The economic order quantity has a number of significant drawbacks, one of which is the assumption that customer demand for the company's goods will remain stable over time.
- Finding the ideal quantity of a product to order is the aim of the EOQ formula. A company can reduce its costs for purchasing, delivering, and storing units if this is accomplished.
- If EOQ can reduce the amount of inventory, the money saved can be put toward another project or investment for the company.
Learn more about Economic Order Quantity (EOQ), here
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