Eoq(costing)

This query is : Resolved

Report Abuse Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2013 Why do we assume that there is no lead time for EOQ model?
why is interest rate a carrying cost?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

09 September 2013 Economic Ordering quantity (EOQ) which assumes arrive in economically for time & cost and production.

So your EOQ will not affect because of time and even what ever quantity we are keeping there should be a carrying cost so carrying cost need to be considered