In the basic EOQ model, which of the following could lead to stock-outs? smaller than average...

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In the basic EOQ model, which of the following could lead to stock-outs? smaller than average...

In the basic EOQ model, which of the following could lead to stock-outs?

		smaller than average lead time
		higher consumption during the lead time
		higher reorder points
		lower consumption during the lead time

business Operations-Management

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Answer 1

Answer #1

Answer: Option B

Explanation: Higher consumption during lead time can lead to stock out.

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Answer 2

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In the basic EOQ model, which of the following could lead to stock-outs? smaller than average...

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