If we assume that inventory is used up at a constant rate and safety stock is zero, the average inventory will be 1/2 the order size.

Name: If we assume that inventory is used up at a constant rate and safety stock is zero, the average inventory will be 1/2 the order size.
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This is a common inventory management assumption and is known as the "basic EOQ model" (economic order quantity model). In this model, the average inventory level is equal to half the order quantity.

If We Assume That Inventory Is Used Up at a Constant