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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.
$1,000 of insurance had not been used up by January 31. $325 of insurance had been used up in January
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