The economic production lot size model is appropriate when
A) demand exceeds the production rate.
B) there is a constant supply rate for every period, without pause.
C) ordering cost is equivalent to the production setup cost.
D) All of the alternatives are correct.

Question

Quizplus · Accepted Answer

The economic production lot size model is appropriate when the ordering cost is equivalent to the production setup cost, as it helps in determining the optimal production quantity that minimizes total costs.

The Economic Production Lot Size Model Is Appropriate When