Question

the ordering cost per order and average unit carrying cost are constant and demand suddenly falls by 75% then EOQ will​

Answer 1

Answer:

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Answer 2

Answer:

The Correct Answer would be increases by 50%. The EOQ will increase by 50% when the ordering cost per order and average unit carrying cost are constant and demand suddenly falls by 75%.

Explanation:

EOQ stands for Economic Order Quantity. It is a measurement used withinside the area of Operations, Logistics, and Supply Management. In essence, EOQ is a tool used to decide the quantity and frequency of orders required to fulfill a given level of call for at the same time as minimizing the value consistent with order.

The Economic Order Quantity is a fixed factor designed to assist businesses minimize the value of ordering and preserving stock. The value of ordering stock falls with the growth in ordering quantity because of buying on economies of scale. However, as the scale of stock grows, the value of preserving the stock rises. EOQ is the precise factor that minimizes each of those inversely associated costs.