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
advances from foreigners

Liquidity Preference Theory This theory states that short term bonds are extremely favorable than long term bonds for two (2) purposes. 1. Investors usually prefer short te

Mr. and Mrs. smith are considering the purchase of a house. They can afford to make  a mortgage payment of $750 per month. If the current mortgage interest rate is 9% with monthly

Suppose an entrepreneur owns a firm that has a production technology that generates the following revenue: R(e) = e 2 +100e where revenue depends on his effort level e. The monetar

Payback Period Method - Traditional Methods This method gauges the viability of a venture via taking the outflows and inflows over time to ascertain how soon a venture can pay

Explain about commercial banks in depository institutions. Commercial banks: Commercial banks accept deposits or liabilities to create loans or assets and to buy governme

WHat are the expected rates of reimbursement for this time frame for each player ?

Uses and Application of Ratios Ratios are required in the following ways via managers in different firms. 1. Evaluating the efficiency of assets employment to generate sale

Problem: (a) Describe why a critical analysis of the following is important while reading a research article: (i) The author, (ii) The date of publication. (b) What do

Determine the amount you would be willing to pay for a $1,000 par value bond paying $80 interest each year (annual) and maturing in 12 years, assuming you wanted to earn a 9% rate