The ROP greater than the EOQ. How is this situation handled? ROP is 160 and the EOQ is 149.07.
I am looking for an original answer and not a copy/pasted one for other sites to include this one, please.
Expert Answer
There is no such condition that ROP > EOQ or for that matter ROP < EOQ since both the items deal with two different aspects albeit of the same subject matter.
ROP stands for Reorder Point and EOQ stands for Economic Order Quantity.
EOQ is the “Optimum quantity” which should be ordered every time an order is placed under Continuous Order
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