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प्रश्न
State the two types of costs associated with the estimation of Economic Order Quantity (EOQ).
लघु उत्तरीय
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उत्तर
The two types of cost associated with the estimation of Economic Order Quantity (EOQ) are:
- Ordering Cost: It is the cost incurred every time an order is placed for raw materials or goods, such as transportation charges, paperwork, and supplier communication.
- Carrying Cost: It is the cost of holding or storing inventory, which includes expenses like warehouse rent, insurance, spoilage, and interest on blocked capital.
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