A-One Garage Doors
Having worked in the door installation industry for about six years, Harry has started his own company called "A-One Garage Doors". The company assembles, installs, provides services and repairs for both residential and industrial garage doors. Like any other business when it comes to residential accounts Harry's conditions are cash but for industrial accounts he thinks he should offer credit. Furthermore, he is contemplating what level of inventory he should keep to meet the demand.

-If Harry were to use EOQ,it would help him in terms of:

Question

A-One Garage Doors
Having worked in the door installation industry for about six years, Harry has started his own company called "A-One Garage Doors". The company assembles, installs, provides services and repairs for both residential and industrial garage doors. Like any other business when it comes to residential accounts Harry's conditions are cash but for industrial accounts he thinks he should offer credit. Furthermore, he is contemplating what level of inventory he should keep to meet the demand.

-If Harry were to use EOQ,it would help him in terms of:

Quizplus · Accepted Answer

EOQ (Economic Order Quantity) helps in optimizing the ordering and carrying costs. This means that Harry can order the right quantity of goods which would help him in reducing the ordering cost and also maintain an accurate inventory level, which would reduce the carrying cost. This is the optimal trade-off between these two costs. Hence, EOQ would help Harry in terms of ordering cost and carrying cost.

A-One Garage Doors Having Worked in the Door Installation Industry for About Six