alleryStart learning →In EOQ, the cost of placing an order is assumed to be what?
AEqual to carrying cost
BFixed regardless of quantity
CZero for repeat orders
DRising with each unit
Answer & Solution
Correct answer: B. Fixed regardless of quantity
Each order carries the same fixed cost whether it contains few or many items.
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Related questions
The ABC concept is based on whose law?An item needs 500 units a year at Rs 40 each. What is its annual usage value?After computing usage values, items are arranged in which order?In ABC analysis, how is an item's annual usage value computed?ABC class thresholds are what?Class B holds 30% of items. About what share of annual consumption value does it hold?Half of all items fall in class C. Roughly what share of consumption value do they hold?ABC analysis resembles which principle, where few items carry most value?