Question

Answer the following questions; Question 1 - When the EOQ shouldn't be used? Question 2-  Examine the...

Answer the following questions;

Question 1 - When the EOQ shouldn't be used?

Question 2-  Examine the nature of operations management decisions.

Question 3-  How can a company reduce supply chain process risk?

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Homework Answers

Answer #1

The EOQ shouldn’t be used in the following situations:

  • In case of rapid demand fluctuation, EOQ should not be used
  • In the case of rapid fluctuation in ordering cost, EOQ should not be used
  • If there is seasonal or economic fluctuation, EOQ should not be implemented
  • If there is data inadequacy, EOQ should not be implemented
  • It should not be implemented if there is a combination of several different products in the same order
  • If there is a requirement of authentic sales report, EOQ should not be used because it only depends on assumptions
  • If there is high inventory, the EOQ cannot be used

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