Question

When they don't have enough money to buy assets such as land, shelter etc



they take loans from banks to fulfill their needs,



when banks ask to pay their loans with high interest, they wont be having enough money to do it so,?

Answer 1

The Economic Order Quantity (EOQ) is the number of units that a company should add to inventory with each order to minimize the total costs of inventory—such as holding costs, order costs, and shortage costs. ... Since the model assumes instantaneous replenishment, there are no inventory shortages or associated costs.