Which of the following is not an assumption of EOQ?
A) Demand is known and constant.
B) lead time is known and constant.
C) Quantity discounts are possible.
D) receipt of inventory in instantaneous.

Question

Quizplus · Accepted Answer

The Economic Order Quantity (EOQ) model assumes that demand is known and constant, lead time is known and constant, and receipt of inventory is instantaneous. It does not assume that quantity discounts are possible; this is a factor that can modify the basic EOQ model but is not a core assumption of it.

Which of the Following Is Not an Assumption of EOQ