Question

Which factor/s need to be considered for deciding the order quantity of products?​

Answer 1

 

1. Holding Costs

2. Annual Demand

3. Order cost

You'll need the following variables to determine the economic order quantity: one is demand rate, second is setup costs, and the third but not the least is holding costs. The economic order quantity, or EOQ, is a formula used by organizations to discover the ideal order amount to save transport costs, storage facilities, stock items, and excess production costs.

Answer 2

Answer:

Holding costs, annual demand, order cost

Step-by-step explanation:

The factors that need to be considered for deciding the order quantity of products are listed below:

1. Holding costs
2. Annual demand
3. Order cost

• The factors like demand rate, setup costs, and holding costs hold extensive importance when it comes to the determination of economic order quantity.
• Certain organizations use EOQ (Economic order quantity) to figure out the right amount of order.
• This thereby assists in saving costs of transport and unnecessary production costs.

Hence, the factors essential for deciding the order quantity of products are, broadly: Holding costs, annual demand, and order cost.

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