How realistic are the assumptions of the Economic Order Quantity (EOQ) model? Discuss how the issues of safety stock can be incorporated in EOQ and re-order point (RP) while ordering inventory. Do you think the model is still used in practice? If not, what model is mostly used while ordering inventory?

Answer rating: 100% (QA)

The economic orderquantity model considers the tradeoff between ordering cost and storage cost in choosing the quantity to use in replenishing item in... View the full answer