It is critical that the exact quantity calculated in the EOQ model be ordered.

Question

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The Economic Order Quantity (EOQ) model provides an optimal order size to minimize the total cost of inventory, including holding and ordering costs. However, it serves as a guideline rather than a strict rule. Businesses often adjust the quantity based on practical considerations such as supplier minimum order quantities, bulk discounts, storage limitations, and demand variability.

It Is Critical That the Exact Quantity Calculated in the EOQ