Sensitivity analysis of EOQ refers to
A)the attitude of top management toward the use of the EOQ model.
B)analysis of how much the EOQ will change if different input values are used.
C)an assessment of the impact of obsolescence upon the EOQ.
D)a study of the impact of storing incompatible products in the same warehouse.
E)analysis of the impact of stock shortages on customers or on production.

Question

Quizplus · Accepted Answer

Sensitivity analysis of EOQ refers to analyzing how much the EOQ will change if different input values are used. It helps in understanding the impact of changes in input variables such as ordering cost, holding cost, and demand on the EOQ quantity.

Sensitivity Analysis of EOQ Refers to