You have taken a job in industry and are facing your first ordering decision. As you prepare to place the order, you remember your instructor teaching you that you wouldn’t use the EOQ formula if:

Question

Answer

the order size is constrained by capacity limitations such as the number or size of the delivery trucks.

Answer

your setup costs and holding costs remain constant and can be determined.

Answer

your carrying costs and ordering costs are known and relatively stable.

Answer

you followed a make-to-stock strategy for an item with stable demand.

Crowdly

You have taken a job in industry and are facing your first ordering decision. As...

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