The EOQ formula has been criticised in a number of areas. Which of the following is not an area of common criticism?
A) The assumptions included in the models.
B) The real costs of stock in operations.
C) Small errors in estimating will result in a significant deviation.
D) The use of the models as prescriptive devices.

Question

Quizplus · Accepted Answer

The EOQ (Economic Order Quantity) formula is often criticized for its assumptions, the real costs of stock not being accurately reflected, and its prescriptive use. However, small errors in estimating do not typically result in significant deviations in the outcome, making option C incorrect in the context of common criticisms of the EOQ formula.

The EOQ Formula Has Been Criticised in a Number of Areas