Inventory planning and control Question:

One of the underlying assumptions of the EOQ model is that?

Answer:

1. Replenishment is non-instantaneous
2. Demand is unstable and unpredictable
3. The purchase price per unit varies with the quantity ordered
4. There is a point where stockholding costs are equal to ordering costs
5. A doubling of demand requires a doubling of the order quantity

There is a point where stockholding costs are equal to ordering costs


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Which of these statements is correct?Which would be the most appropriate method of controlling stock in a retail shop?