Business Studies, asked by khanm9750, 2 days ago

Determine the economic run size

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Answered by ojasviiojasvii8
0

Answer:

Also referred to as 'optimum lot size,' the economic order quantity, or EOQ, is a calculation designed to find the optimal order quantity for businesses to minimize logistics costs, warehousing space, stockouts, and overstock costs. The formula is: EOQ = square root of: [2(setup costs)(demand rate)] / holding costs.

Explanation:

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