The economic order quantity
A) assumes that inventory usage is seasonal.
B) assumes that delivery times of each order are consistent.
C) considers stock-outs.
D) all of the other answers are correct

Question

Quizplus · Accepted Answer

Economic order quantity is based on the assumption that the delivery time of each order is consistent. It calculates the optimum order quantity that minimizes total inventory holding costs and order costs. The formula takes into account the ordering costs, holding costs, and the demand rate. A constant lead time is assumed for calculating EOQ.

The Economic Order Quantity