How valid are the assumptions for the simple EOQ model?
Answer to relevant QuestionsHow is a service level determined for most inventory items? A popular item stocked by the Fair Deal Department Store has an annual demand of 600 units. The cost to purchase these units from the supplier is $ 20 per unit and $ 12 to prepare the purchase order. The annual inventory ...A wholesaler encounters a constant demand of 200 cases of one brand and box size of soap flakes per week from his retail accounts. He obtains the soap flakes from the manufacturer at $ 10 per case after paying the ...The daily demand for an item is distributed normally, with a mean of 5 and a vari-ance of 2. The cost to place an order is $ 10, and the carrying charge per day is esti-mated at 10 percent of the inventory value. The ...Discuss the difference between time variance, cost variance, and schedule variance.
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