Question: You just computed the EOQ for an inventory item using the (Q,R) system, and your answer is Q = 315 units. The item in question
You just computed the EOQ for an inventory item using the (Q,R) system, and your answer is Q = 315 units. The item in question comes in boxes of 100, so you will need to round your answer. Which of the following presents the more valid logic:
Round the answer up to Q = 400, because Q = 300 will on average leave you with shortage of 15 units (compared to EOQ = 315) in each ordering cycle.
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