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What are the assumptions of Economic Order Quantity?
Assumptions of Economic Order Quantity (EOQ):
a. The stage of customer demand is identified
b. The stage of customer demand arises at an even rate over time
c. Constant purchase price of inventory
d. A fixed cost be presents for all order placed
e. The lead time for inventory is constant as an example like, how long this takes for inventory to be delivered when an order has been placed.
How might a company determine if its compensation was externally competitive?
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