Eoq assumptions, Finance Basics

EOQ Assumptions

The basic EOQ model creates the following supposition as:

i) The demand is identified and constant over the year

ii) The ordering cost is constant per order and specific

iii) The holding cost is constant per unit per year

iv) The purchase cost is constant or whereas no quantity discount

v)  Back orders are not permitted.

Posted Date: 1/31/2013 8:08:57 AM | Location : United States







Related Discussions:- Eoq assumptions, Assignment Help, Ask Question on Eoq assumptions, Get Answer, Expert's Help, Eoq assumptions Discussions

Write discussion on Eoq assumptions
Your posts are moderated
Related Questions
Underwriting - Stock Market 1. This is the supposition of risk relating unsubscribed shares 2. When new shares are issued, they might be beneath -written or unsubscribed. A

Assignment: Mr. Ali wants to start “Rent-A-Car” business. He wants to start this business with at least 20 cars. He estimates that the required investment for the business is Rs.

Logistics Management - Supply Chain Management The objectives of logistics management are to: Determine the best routes to market; air, rail or road Determine if w

Accounting Rate of Return Method or ARR This method utilizes accounting profits from financial status to assess the viability of investment proposal via diving the average inc

Computation of Weights or Proportions In computation of the weights or proportions of different capital components, the following values might be used like as: Mar

(a) RBC has 100 loans outstanding, each for $1 million, which it expects to be repaid today.  Each loan has a 5% probability of default, in which case the bank is not repaid anythi

Importance of Working Capital Management The finance manager must understand the management of working capital since of the following purpose: a) Time devoted to working c

Conduct research and explain the companies, their operations, locations, markets, and lines of business. Collect financial statements for the past three years, fiscal or calendar .

Rights of Ordinary Shareholders A. Right to vote Choose BOD Purchase/Sales of assets B. Influence decisions as: Right to residual ass

Acceptance Rule of Accounting Rate of Return or ARR ARR procedure will accept those projects whose ARR is higher rather than that set with management or with bank rate and it