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In context of holding cost,
How is the holding quantity =1/2 of ordered quantity?
I have considered the presumption that goods are ordered at fixed installment quantity over fixed intervals..But sir what if all the goods aren’t realised won’t it cause higher holding charges?
Is it presumed that all goods are realised..
Or
Does it seldom matters on decision of ordering whether goods are realised or notWe assume that demand is spread evenly over the year and that immediately before a new order is received, the inventory will have fallen to zero.
Again, I do explain this in my lectures. Have you really watched them? 🙂
Okay sir now I understand the presumption completely..I may revisit lecture..
Thanks
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