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Basic EOQ Model Quiz

Most inventory models attempt to minimize

In the basic EOQ model, if the cost of placing an order doubles, and all other values remain constant, the EOQ will

In the basic EOQ model, if D = 6,000 per year, S = $100, H = $5 per unit per month, the Economic Order Quantity is approximately

Which of the following statements about the basic EOQ model is true?

Which of the following statements about the basic EOQ model is false?

A product whose EOQ is 40 experiences a decrease in ordering cost from $90 per order to $10. The revised EOQ is

A product whose EOQ is 400 experiences a 50% increase in demand. The new EOQ is

For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model was 200 units and the total annual inventory cost was $600. The inventory carrying cost per unit per year for this item is

A product has demand of 4,000 units per year. Ordering cost is $20 and holding cost is $4 per unit per year. The EOQ model is appropriate. The cost-minimizing solution for this product will cost _____ per year in total annual inventory costs.

A product has demand of 4,000 units per year. Ordering cost is $20 and holding cost is $4 per unit per year. The cost-minimizing solution for this product is to order