Average inventory is calculated as the (maximum inventory + minimum inventory)/ 2 in ______.
A)only the EPQ model
B)only the EOQ model
C)both EPQ and EOQ models
D)neither EPQ nor EOQ models

Question

Quizplus · Accepted Answer

The average inventory calculation as (maximum inventory + minimum inventory) / 2 is used in both the Economic Order Quantity (EOQ) and Economic Production Quantity (EPQ) models to determine the average level of inventory held over a period of time.

Average Inventory Is Calculated as the (Maximum Inventory + Minimum