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Economic Order Quantity Model:

In Inventory Management? a. economic order quantity model is used to forecast order sizes b. economic order quantity model is not used because it is used in economics c. economic order quantity model is used to calculate sales price of items

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Question ajoutée par Anayatullah Tahir , Finance Manager , Etqan Projects
Date de publication: 2014/03/25
Muhammad Zubair
par Muhammad Zubair , CFO / Chief Accountant , RH Group

a. economic order quantity model is used to forecast order sizes

Mark John Domingo
par Mark John Domingo , General Accountant , Palma Holding

A

Yusuf Dalal
par Yusuf Dalal , General Accountant. , Gmamco Contracting LLC

Answer is A

Ruhtash Kumar Singla
par Ruhtash Kumar Singla , General Manager- Sales & Operations , Elevate X (Luxury Furniture)

A

MOHAMMED HUMAID ABDULLAH ALGHAFRI humaid
par MOHAMMED HUMAID ABDULLAH ALGHAFRI humaid , engineering officer , mod oman

economic is the challenge around the world and should be studied carefully

Umair Siddiqui
par Umair Siddiqui , Finance Manager , TPG Publishing LLC

Perfect answer for this Question is A) economic order quantity model is used to forecast order sizes.

But it also helps in deciding Sale price (only Valid if cost Mark-up Technique is used) as it defines minimum holding cost which is one the important part of total Cost. If total cost varies sale price varies.

E.g. (Other Cost20 + holding Cost10 = Total Cost30 x Mark-up10% = Sale Price33)

 

E.g. (Other Cost20 + holding Cost5 = Total Cost25 x Mark-up10% = Sale Price27.5)

 

Therefore Option C is also Correct. 

KSasidharan Nair BalagopalanNair
par KSasidharan Nair BalagopalanNair , Chief General Manager , Nikunjam Constructions Ltd.

Just in time(JIT)method of inventory

P A Cariappa Appaiah
par P A Cariappa Appaiah , back office executive , Inspire Hond

absolutely correct, i agree.

Ramesh Potharla
par Ramesh Potharla , CHIEF ACCOUNTANT , AL MUQADIMAH TRADING LLC

Option A is Correct: Economic order quantity (EOQ) is the order quantity that minimizes total inventory holding costs and ordering costs

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