Question: When is it appropriate to use an Economic-Order-Quantity (EOQ) to determine an inventory order quantity? 1. When product has long life cycle and there is

When is it appropriate to use an Economic-Order-Quantity (EOQ) to determine an inventory order quantity?

1. When product has long life cycle and there is fixed cost of ordering.

2. When products demand is uncertain and there is a known cost of under-stocking.

3. When product is perishable and there is cost of holding inventory.

4. When product has short lifecycle and it is very expensive to buy.

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