You have taken a job in industry and are facing your first ordering decision. As you prepare to place the order, you remember your instructor teaching you that you wouldn’t use the EOQ formula if:

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the order size is constrained by capacity limitations such as the number or size of the delivery trucks.

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you followed a make-to-stock strategy for an item with stable demand.

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your carrying costs and ordering costs are known and relatively stable.

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your setup costs and holding costs remain constant and can be determined.

Crowdly

You have taken a job in industry and are facing your first ordering decision. As...

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