6. Explain the following: a. Economic Order Quantity( EOQ) b. PERT and CPM c. Operating Characteristics of a Queuing System [Explanation of Integer programming model-4 Explanation of PERT and CPM-3 Explanation of Operating Characteristics of a Queuing System-3]
Answer: a) Economic Order Quantity( EOQ)
The Economic Order Quantity (EOQ) is the number of units that a company should add to inventory with each order to minimize the total costs of inventory—such as holding costs, order costs, and shortage costs. The EOQ is used as part of a continuous review inventory system in which the level of inventory
