As discounts on inventory purchases are frequent in most industries, the standard economic order quantity and re-order point calculations incorporate quantity discounts.

Question

Quizplus · Accepted Answer

Standard Economic Order Quantity (EOQ) and re-order point calculations typically do not automatically incorporate quantity discounts; they focus on balancing ordering and holding costs. Adjustments or alternative models are needed to account for quantity discounts.

As Discounts on Inventory Purchases Are Frequent in Most Industries