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9 months ago

Place the steps for finding the EOQ in a quantity discount model with variable H in the correct order.

Business

1 answer:

ira [324]9 months ago

4 0

The steps for finding the EOQ in a quantity discount model with variable H are:

The optimal point is the quantity that yields the lowest cost
Start with the lowest price
If the minimum point is feasible
Otherwise, compare total costs

What is the Economic Order Quantity(EOQ)?

The Economic Order Quantity is the ideal quantity of units a company should purchase to meet demand while minimizing inventory, costs such as holding costs, shortage costs, and order costs.

The economic order quantity formula assumes that demand, ordering and holding costs all remain constant.

Learn more about Economic Order Quantity here:

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