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??
Ask the Tutor ACCA FM
EOQ
8y ago#1No, 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.
This topic is locked — no new replies.