All of these are assumptions of the economic order quantity model, except:
A) demand does not fluctuate seasonally.
B) no buffer inventory is required.
C) the amount of inventory held is constant over the period.
D) there are no discounts for bulk purchases.

Question

Quizplus · Accepted Answer

The economic order quantity model assumes that demand is constant, buffer inventory is required, and there may be discounts for bulk purchases. However, it does not assume that the amount of inventory held is constant over the period. In fact, the purpose of the economic order quantity model is to determine the optimal amount of inventory to order, which may vary depending on demand and other factors.

All of These Are Assumptions of the Economic Order Quantity