Question: The Economic Order Quantity ( EOQ ) is a fixed - order quantity model where the inventory is continuously monitored and as soon as the
The Economic Order Quantity EOQ is a fixedorder quantity model where the inventory is continuously monitored and as soon as the inventory drops to level R or below an order for Q units is placed on the supplier. In addition to the perunit costs C a fixed order cost S is charged for the order regardless of the size of the order. The order arrives after a lead time L
The decision in the EOQ is Q and is determined as a tradeoff between two costs. Choose the two relevant costs from the following list:
Group of answer choices
annual purchase cost
ordering cost
stockout cost
holding cost
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