Which of the following is a limitation of Economic Order Quantity?
A) It is weak in assessing the appropriate order quantity
B) It fails to consider inventory holding costs
C) It does not take quantity discounts into account
D) It fails to consider ordering costs

Question

Quizplus · Accepted Answer

Economic Order Quantity (EOQ) does not take into account quantity discounts, which can result in ordering larger quantities than necessary and increasing inventory holding costs. While the other options are important considerations for EOQ, they are not necessarily limitations.

Which of the Following Is a Limitation of Economic Order