Which factor is NOT typically considered when calculating EOQ?

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When calculating the Economic Order Quantity (EOQ), several key factors are taken into account to determine the most efficient order size that minimizes total inventory costs. The demand rate for products is essential, as it directly influences how much inventory is necessary to meet customer needs without running out of stock. Carrying costs, which include expenses related to holding inventory such as storage, insurance, and depreciation, factor into the calculation to help balance the costs of ordering and storing products.

Storage capacity is also considered, as it limits how much inventory can be held at one time and affects the practicality of ordering larger quantities. However, ordering frequency is not typically included in the EOQ formula because EOQ focuses primarily on the optimal order size rather than how often orders are placed. The model assumes a constant demand and does not incorporate variations in order frequency; hence, while frequency might influence overall inventory management, it does not directly factor into the EOQ calculation. This distinction clarifies why ordering frequency is not relevant to EOQ analysis.

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