The EPQ model assumes units are received incrementally because ______.
A)the supplier is sending units incrementally
B)the company follows a just-in-time strategy for delivery of supplies
C)the units are being produced incrementally
D)items are produced all at once to build up the inventory instantaneously

Question

Quizplus · Accepted Answer

The EPQ model, or Economic Production Quantity model, assumes units are received incrementally because it is based on the premise that items are produced in batches or lots, not all at once. This means production and receipt of units occur gradually over time as each batch is completed.

The EPQ Model Assumes Units Are Received Incrementally Because ______