As demand changes, EOQ too would change as a function of the square root of the change in demand (assume that ordering and holding costs remain constant). XYZ company sees that its demand for a particular SKU has declined from 8000 to 5000 per year while it's EOQ has declined by 10% in the same period of time. Is the inventory manager doing a good job managing that SKU, assuming that all other factors have remained constant. EOQ = sq root of [(2D*S)/H] Where: D = annual demand in units S = cost of placing 1 order; H = cost of holding 1 unit of that item in inventory for 1 year Yes Cannot say No

Aa demand changes, EOC too would change os a function of the square root of the change in demand (assume that ordering and hold og costs remain constant) XcYZ company sens that cis demand for a parficular sxU has decined form boco to 5000 per year whilo its EOQ has decined by 10% in the same poriod of time. Is the imventory managor doing a good fob managing that skU, assuming that all other factors Aive remanod constant Where 0 *arnual demand in units - cost of plaong t order, H = cost of holing 1 unt of that eem in imentery for 1 year Vis Cannot say No