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 consistent.
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.

Question

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 consistent. 
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.

Quizplus · Accepted Answer

The Answer of 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 consistent. 
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.

Which of the Following Is NOT an Assumption of the Economic