With the basic EOQ model,we want stock replenishment to arrive exactly when the inventory drops to zero.

Name: With the basic EOQ model,we want stock replenishment to arrive exactly when the inventory drops to zero.
Brand: Quizplus
Rating: 4.8 (35 reviews)

Question

Quizplus · Accepted Answer

The basic EOQ model assumes that demand is constant and that the lead time for replenishment is known. Therefore, it is possible to calculate the optimal order quantity that will result in the inventory dropping to zero just as the new order arrives.

With the Basic EOQ Model,we Want Stock Replenishment to Arrive