ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Fixed Order Point was represent and determine by EOQ and Fixed Order Interval is set time interval and reviewed at a certain.
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True
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False
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -What is the EOQ Reorder Point? The EOQ reorder point is a contraction of the term economic order quantity reorder point. It is a formula used to derive that number of units of inventory to order that represents the lowest possible total cost to the ordering entity.
Detailed explanation-2: -EOQ inventory models are basically concerned with the timing of orders. The EOQ should be regarded as an approximate quantity rather than an exact quantity. Thus, rounding the calculated value is acceptable. Carrying cost is a function of order size; the larger the order, the higher the inventory carrying cost.
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