The EOQ model assumes that each purchase order arrives?

Name: The EOQ model assumes that each purchase order arrives?
Brand: Quizplus
Rating: 4.7 (47 reviews)

Question

Quizplus · Accepted Answer

The EOQ model assumes that each purchase order arrives in a single delivery. This simplifying assumption allows the model to calculate the optimal order quantity and reorder point based on a fixed cost per order and a holding cost per unit. If orders were spread across multiple deliveries, it would complicate the calculation of holding costs and reorder points.

The EOQ Model Assumes That Each Purchase Order Arrives