The Economic-Order-Quantity Decision Model Homework Help

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What is EOQ?

The EOQ (Economic Order Quantity) is basically the number of units that should be added by the company to inventory with each order for minimizing the total cost, such as order costs, shortage costs, and holding costs. The EOQ is used for monitoring inventory level as a part of review inventory system in which a certain quantity is ordered once inventory level reaches a certain point.

The Economic Order Quantity gives a model to calculate the necessary reorder point along with the reorder quantity. This ensures inventory replenishment whenever necessary with no shortages. You need to have this basic understanding of the EOQ model before you start working on assignments and homework on this topic. Our experts can help you with that through the economic-order-quantity decision model assignment help they provide.

Usefulness for small business owners

When you learn about this model through the economic-order-quantity decision model homework help, you will come to know that this decision model is a useful tool for owners of small business. It helps them with decisions relating to the amount of inventory they should keep on hand, the number of items they should order each time and how often they must reorder while making sure that lowest possible costs are incurred.

Costs involved

It is assumed by the EOQ model that the demand is constant and the depletion of inventory takes place at a certain rate until it is depleted to zero. At this point, a certain number of items come to take inventory to its starting level. No associated costs or inventory shortages are involved because instantaneous replenishment is assumed by the model.

Thus, under the EOQ model, the cost of inventory involves holding costs and order costs. An order of large amount at a single time would increase the holding costs of a small business. On the other hand, more frequent orders of few items shall reduce the holding costs but increases the order costs. The Economic Order Quantity Model finds out the quantity for minimizing the total of these costs. You can learn the exact way of calculating these costs through our the economic-order-quantity decision model homework help.

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