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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.
Yard Stick Required in Ratio Analysis 1. Past performance of the company The company's previous performance past ratio is needed to gauge or measure the company's present
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