Which of the following is not one of the assumptions of the basic EOQ model?
A)Annual demand requirements are known and constant.
B)Lead time does not vary.
C)Each order is received in a single delivery.
D)Quantity discounts are available.
E)Ordering and holding costs have been estimated reasonably accurately.

Question

Quizplus · Accepted Answer

The basic Economic Order Quantity (EOQ) model assumes a constant demand, constant lead time, single delivery per order, and accurately estimated ordering and holding costs. It does not account for quantity discounts, which are considered in more advanced inventory models.

Which of the Following Is Not One of the Assumptions