Eoq formula, Microeconomics

Assignment Help:

EOQ formula 

The EOQ equation assumes demand is constant and steady. It also assumes that demand for different items is independent. This is inappropriate for controlling inventories in intermittent systems of assembled products where demand for lower level items is dependent on demand for finished goods. Consider the Ford Motor Company.

Demand for wheels or tyres are very much related to the demand for engines. So for components and raw materials it is wrong to apply the EOQ model.


Related Discussions:- Eoq formula

Consumer equlbrim, how can a consumer get maximum Equlbrim

how can a consumer get maximum Equlbrim

Problem, For each of the following scenarios, you use a SS & DD diagram to ...

For each of the following scenarios, you use a SS & DD diagram to demonstrate the effect of a given shock on equilibrium price and quantity in specified competitive market. Explain

Calculate the responsiveness of consumers, The price elasticity of demand i...

The price elasticity of demand is how economists calculate the responsiveness of consumers to alters in prices for a commodity.  In other words, as price enhances (reduces), the qu

Elasticity of demand, elasticity of demand of a product in different market...

elasticity of demand of a product in different market forms such as perfect competition, monoply etc.

Gross domestic product - deflator, Gross Domestic Product, Deflator: A pric...

Gross Domestic Product, Deflator: A price index that adjusts the overall value of GDP according to average increase in the prices of all output. GDP deflator equals the ratio of no

Assignment , I need someone to solve my assignment

I need someone to solve my assignment

Demand functions for one product facing two markets, Suppose a firm faces t...

Suppose a firm faces two markets for the same product. In market A, the demand function is PA=60-QA, while in market B the demand function is PB=36-0.5QB. The total cost function i

Explain the term returns to scale, An increase in the scale means that all ...

An increase in the scale means that all inputs or factors are increased in a given proportion. Increase in the scale thus occurs when all factors or inputs are increased keeping fa

Organization becoming too large to effectively manage, Economies of scale a...

Economies of scale are advantages obtained from a company becoming large and diseconomies of scale are additional costs inflicted because a firm has become very large.  The causes

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd