Critical Thinking Questions

In the basic EOQ model shown below, which variable did the retail sector get very wrong?

$Q^{**}=\sqrt[\phantom{2}]{\frac{2DS}{H}}$

A$.$ S

B$.$ D

C$.$ square root $($as it is not relevant in the retail sector$)$

D$.H$

$2.$ Which inventory model might have provided a better outcome for the retail sector?

A$.$ constant demand and variable lead time model.

B$.$ production order quantity model

C$.$ variable demand and constant lead time

D$.$ basic EOQ model without the square root