Multiple Choice
Which of the following is not an assumption of the economic order quantity model shown below?
Q* =
A) Demand is known, constant, and independent.
B) Lead time is known and constant.
C) Quantity discounts are not possible.
D) Production and use can occur simultaneously.
E) The only variable costs are setup cost and holding (or carrying) cost.
Correct Answer:

Verified
Correct Answer:
Verified
Q5: Demand for a product is relatively constant
Q124: A local club is selling Christmas trees
Q137: An inventory decision rule states "when the
Q138: All of the following statements about ABC
Q140: In a safety stock problem where both
Q141: A bakery wants to determine how many
Q143: A disadvantage of the fixed-period inventory system
Q144: The assumptions of the production order quantity
Q145: Louisiana Specialty Foods can produce their famous
Q147: When demand is constant and lead time