Which of the following is NOT an assumption of the economic order quantity (EOQ) model?
A) Demand is known, constant, and independent.
B) Lead time is known and constant.
C) Quantity discounts are not possible.
D) Production and use occur simultaneously.
E) The only variable costs are setup cost and holding cost.

Question

Quizplus · Accepted Answer

The EOQ model assumes that production and use do not occur simultaneously; rather, it assumes that inventory is replenished in batches and used gradually.

Which of the Following Is NOT an Assumption of the Economic