Which of the following is an assumption of the basic EOQ model?
A) Lead time is unknown.
B) Demand may be seasonal.
C) Orders arrive at once (in one lot).
D) Quantity discounts are considered.
E) Lost sales are allowed, but not back orders.

Question

Quizplus · Accepted Answer

The basic EOQ model assumes that orders arrive all at once, in one lot. The other options are not assumptions of the basic EOQ model.

Which of the Following Is an Assumption of the Basic