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EOQ

This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.

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August 24, 2017 at 6:13 pm #403369
khuramch
Member
- Topics: 41
- Replies: 29
Hello sir
i am confused in one Question
Q;which of the following statement about the economic order Q and the Re-order level are TRUE??
A;EOQ Determines the ROL
B:The ROL Determines EOQ
C;Both are influnced by demand
D;Both are influnced by lead time..
Sir according to KIT (C) is correct and obviously it is but Statement A is also look like correct..Am i right??
August 25, 2017 at 7:00 am #403410
John Moffat
Keymaster
- Topics: 57
- Replies: 54805
No, you are wrong.
The order quantity does not affect the level at which you place a new order. The level at which you place a new order depends on the likely demand over the lead time – the time between placing an order and receiving the order.
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