The economic order quantity
A) assumes that inventory usage is seasonal.
B) assumes that delivery times of each order are consistent.
C) considers stock-outs.
D) All of the options are true.

Question

Quizplus · Accepted Answer

The economic order quantity (EOQ) model assumes that the delivery times for each order are consistent. EOQ considers the trade-off between ordering costs and inventory holding costs to determine the optimal quantity to order. It does not explicitly consider stock-outs or seasonal inventory usage.

The Economic Order Quantity