In the Quantity Discount EOQ inventory model, which of the following items is NOT considered relevant...
In the Quantity Discount EOQ inventory model, which of the following items is NOT considered relevant in determining the lowest cost order quantity? A. The cost of placing an order. B. The individual purchase price of an item of inventory. C. The cost of carrying an item in inventory. D. The variability of demand during lead time. E. The annual demand for the product.
Homework Answers
Following components or items are needed to calculate the EOQ -
1. The price of the item.
2. The cost of placing an order.
3. The carrying cost of item.
4. Annual demand of the item.
Thus,
In the Quantity Discount EOQ inventory model, the variablity of demand during lead time is not considered relevant in determining the lowest cost order quantity.
Hence, the correct answer is the option (D).
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In the Quantity Discount EOQ inventory model, which of the following items is NOT considered relevant...
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