Which of the following is not an identified reason why manufacturing firms do not use optimal EOQ order quantities?
A) do not have known uniform demand
B) some suppliers have a minimum order quantity
C) how the material is shipped
D) what the sales price is
E) insufficient storage space

Question

Quizplus · Accepted Answer

The sales price of a product is not a reason why manufacturing firms do not use optimal EOQ order quantities. The EOQ model is focused on minimizing inventory costs, and the sales price is unrelated to these costs. The other options, such as demand variability, supplier constraints, shipping considerations, and storage limitations, are all factors that could lead to suboptimal order quantities.

Which of the Following Is Not an Identified Reason Why