An assumption of economic order quantity is that demand is steady. An increase in demand or usage rates will lead to:
A) inventory shortfalls
B) excess inventory
C) efficient level of inventory
D) change in the kind of inventory held

Question

Quizplus · Accepted Answer

Economic order quantity assumes that demand or usage rates remain constant. An increase in demand or usage rates will lead to inventory shortfalls as the current inventory levels will not be sufficient to meet the increased demand.

An Assumption of Economic Order Quantity Is That Demand Is