Which of these conditions is NOT necessary for the economic order quantity model to be valid?
A) The item has a constant demand.
B) The item has a constant lead time.
C) The item has a constant price.
D) The item has a constant safety stock.

Question

Quizplus · Accepted Answer

The economic order quantity model does not require a constant safety stock. In fact, safety stock is often used to account for variability in demand or lead time, which can be incorporated into the model through probabilistic assumptions. The other conditions - constant demand, constant lead time, and constant price - are necessary for the EOQ model to be valid.

Which of These Conditions Is NOT Necessary for the Economic