The economic order quantity (EOQ) model is well accepted. However, there are weaknesses associated with
several of its assumptions. What are these weaknesses?
What will be an ideal response?
Weakness associated with the EOQ model assumptions include the assumption of constant demand, constant unit
price, constant carrying costs, constant ordering costs, instantaneous delivery, and independent orders. Many of these
shortcomings can be overcome with modifications of the basic model.
You might also like to view...
The controllable variables the company puts together to satisfy a target group are referred to as the
A. promotional mix. B. target market. C. marketing mix. D. product orientation.
Harry Corporation's common stock currently sells for $180 per share. Harry just paid a dividend of $10.18 and dividends are expected to grow at a constant rate of 6 percent forever
If the required rate of return is 12 percent, what will Harry Corporation's stock sell for one year from now? A) $190.64 B) $187.04 C) $195.40 D) $179.84