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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.
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discuss the meaning and advantage of captive insurance
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Miller-Orr Model Unlike the Baumol's Model, Miller-Orr Model is a stochastic or like probabilistic model that creates the more realistic assumption of doubt in cash flows.
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