Answered

At Westonci.ca, we provide clear, reliable answers to all your questions. Join our vibrant community and get the solutions you need. Get detailed and precise answers to your questions from a dedicated community of experts on our Q&A platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

All of the following are true about the basic EOQ model except One half the order size equals the average inventory level. The average dollar value of inventory equals unit price multiplied by order quantity. Annual demand divided by EOQ will give the optimal number of orders per year. The reorder point equals daily demand multiplied by the lead time in days, excluding safety stock.

Sagot :

Kolawole845

Answer:

Hence, the second statement describing the average inventory is false

Explanation:

The Economic Order Quantity (EOQ) is the order size that minimizes the balance of ordering cost and holding cost. At the EOQ, the carrying cost is equal to the holding cost. It is the order size that optimizes the investment in stock ordering.

The following statements

The number of orders = Annual demand/order size

Re-order level(point) Average daily usage × average lead time

Average inventory = safety stock × (1/2× order size)

The average Dollar value = Unit price × average inventory

Hence, the second statement describing the average inventory is false

Thank you for choosing our service. We're dedicated to providing the best answers for all your questions. Visit us again. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.