In the calculation of the EOQ, why do we take the total carrying cost on half the value of EOQ,...
Question:
In the calculation of the EOQ, why do we take the total carrying cost on half the value of EOQ, and not on the total annual consumption?
Economic Order Quantity:
The economic order quantity (ECQ) model is a model of inventory management. The model helps business determine the optimal quantity per order in order to minimize the total cost of managing inventory.
Answer and Explanation: 1
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View this answerIn the economic order quantity model, the decision maker tries to minimize the total cost, which is the sum of order cost and holding cost (or...
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