Fixed Order Quantity - What is the difference between EOQ and Poq?

Q: What is the difference between EOQ and Poq?

The EOQ model assumes that items produced are of perfect quality making the cost of production dependent on demand. The POQ on the other hand assumes that demand is a linearly increasing function of time and the production rate is proportional to the demand and said to be a dependent factor.

Answer

The EOQ model bases production costs on demand, supposing that all manufactured goods are of the highest quality. However, according to the POQ, production rate is directly proportional to demand, which is considered a dependent variable, and demand grows at a linear rate over time.

Fixed Order Quantity - What is the difference between EOQ and Poq?

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