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

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