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Hi everybody,

The Real CMRP exam screen is different from this screenshot so i think it is from a simulation exam or something like this.

However, EOQ stands for Economic Order Quantity and it is mainly used to order the best quantity from the economic point of view to optimize ordering cost and holding cost. Inventory turn over is related to how many times you emptying and refill you inventory which related to how many parts are ordered each time and for how long they cover your demand. so, from one point EOQ can enhance the turn over (high is good) if you used to order larger quantities than EOQ and it will worthen it if you used to order less quantities of EOQ.

Generally, I think the correct answer will be true.

Ahmed, with respect, not sure your definition of inventory turns is accurate.  Inventory turn is not how many times you turn an individual item over but rather how many times you turn the VALUE of your total inventory not specific materials. calculation for inventory turns in cost of materials issued for the month / the average month ending inventory x 100.

The reason I discourage anyone from using EOQ is for several reasons. (1) Can anyone tell me what is the exact annual usage for a MRO item? Other than PM materials this is very difficult to be absolute sure what your "Known Usage will be for the year. (2) Can anyone tell exactly what the cost is to place an order? (3) Can anyone tell me exactly what's the percentage for calculating Carrying Cost? How about lead-time which today, is very unstable.

Hi everybody,

The Real CMRP exam screen is different from this screenshot so i think it is from a simulation exam or something like this.

However, EOQ stands for Economic Order Quantity and it is mainly used to order the best quantity from the economic point of view to optimize ordering cost and holding cost. Inventory turn over is related to how many times you emptying and refill you inventory which related to how many parts are ordered each time and for how long they cover your demand. so, from one point EOQ can enhance the turn over (high is good) if you used to order larger quantities than EOQ and it will worthen it if you used to order less quantities of EOQ.

Generally, I think the correct answer will be true.

Ahmed, with respect, not sure your definition of inventory turns is accurate.  Inventory turn is not how many times you turn an individual item over but rather how many times you turn the VALUE of your total inventory not specific materials. calculation for inventory turns in cost of materials issued for the month / the average month ending inventory x 100.

The reason I discourage anyone from using EOQ is for several reasons. (1) Can anyone tell me what is the exact annual usage for a MRO item? Other than PM materials this is very difficult to be absolute sure what your "Known Usage will be for the year. (2) Can anyone tell exactly what the cost is to place an order? (3) Can anyone tell me exactly what's the percentage for calculating Carrying Cost? How about lead-time which today, is very unstable.

Hi everybody,

The Real CMRP exam screen is different from this screenshot so i think it is from a simulation exam or something like this.

However, EOQ stands for Economic Order Quantity and it is mainly used to order the best quantity from the economic point of view to optimize ordering cost and holding cost. Inventory turn over is related to how many times you emptying and refill you inventory which related to how many parts are ordered each time and for how long they cover your demand. so, from one point EOQ can enhance the turn over (high is good) if you used to order larger quantities than EOQ and it will worthen it if you used to order less quantities of EOQ.

Generally, I think the correct answer will be true.