Using the EOQ model, a manager can determine _____________. This allows the firm to place orders before inventories reach a critical level, allowing for sufficient delivery time.

Question

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The EOQ (Economic Order Quantity) model helps in determining the reorder point, which is the inventory level at which a new order should be placed to replenish stock before it runs out, ensuring there is enough lead time for delivery and avoiding stockouts.

Using the EOQ Model, a Manager Can Determine _____________