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
effect of gdp in the domestic market

I need help with financial econometric questions, i got stuck in finding answers for my homework, Can you provide engineering level financial econometric homework help? I need expe

i have the information given but i am having trouble getting the income statement done correctly

Use the concepts of marginal cost and marginal revenue to derive an optimal capital budget for Company X, which has identified 7 possible investment projects and determined its cos

Existence of Quantity Discounts Recurrently, the firm is capable to take benefits of quantity discounts.  Since these discounts affect the price per unit, they influence also

The following NPV's have been calculated to determine if a compressor installation should be accelerated from Year 3 to Year 7. The compressor cost is $1,500,000.   a. C

Computation of Payback Period Method 1. Under uniform annual incremental cash inflows - if the venture or an asset generates uniform cash inflows then the payback period (PB


Advantages of Residual Theory 1. Saving on floatation costs No require to raise debt or equity capital as there is high retention of earnings that necessitates no floatat

Disadvantage of Leasing an Asset A. It is a pre-conditional finance as on the needs of asset B. In the long term the lease charges might out-weigh the cost of buying own as