Which of the following is not an assumption of the EOQ model with planned shortages?
A)Demand is constant
B)Each order is received all at once
C)Orders are received just when desired
D)When a shortage occurs,customers are lost
E)All are assumptions

Question

Which of the following is not an assumption of the EOQ model with planned shortages?
A)Demand is constant 
B)Each order is received all at once 
C)Orders are received just when desired 
D)When a shortage occurs,customers are lost 
E)All are assumptions

Quizplus · Accepted Answer

This is not an assumption of the EOQ model with planned shortages. The model assumes that shortages are allowed and planned for, and that backorders are accepted. It does not assume that customers are lost when a shortage occurs.

Which of the Following Is Not an Assumption of the EOQ