Is eoq model outdated technique for inventory control, Operation Management

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Is eoq model outdated technique for inventory control

Consider the following assumptions of the EOQ model assumptions:

The ordering cost is constant.
The rate of demand is known and spread evenly throughout the year.
The lead time is fixed.
The purchase price of the item is constant (i.e., no discount is available).
The replenishment is made instantaneously; the whole batch is delivered at once.

Only one product is involved.

1. Do you think these assumptions are realistic, or is the EOQ model an outdated technique for inventory control? If so, why? If not, why not?

2. Could the model be modified to fit the needs of specific businesses?

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Operation Management: Is eoq model outdated technique for inventory control

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Operation Management: Is eoq model outdated technique for inventory control

Reference No:- TGS080067

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Recent Questions Asked Operation Management

Q : Calculate jeff''s stock and debt basis at the end of 2009

Q : What impact factors likely to have on om strategy

Q : Calculate the net increase/decrease in profits next year

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Q : Is eoq model outdated technique for inventory control

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Request for Solution File

Ask an Expert for Answer!!

Operation Management: Is eoq model outdated technique for inventory control

Reference No:- TGS080067

Recent Questions Asked Operation Management

Q : Calculate jeff''s stock and debt basis at the end of 2009

Q : What impact factors likely to have on om strategy

Q : Calculate the net increase/decrease in profits next year

Q : How much as tuition revenue

Q : Is eoq model outdated technique for inventory control

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Q : Determine the amount of net futa tax

Q : How is bank doing with regard to competitive priority

Q : Production budget based on a calendar year

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