Which of the following is not an assumption for the basic EOQ model?
A)Only an integer number of orders can be made each year.
B)Quantity discounts are not possible.
C)Inventory receipt is instantaneous (all at once).
D)With orders placed at the correct time, there will be no shortages.

Question

Quizplus · Accepted Answer

The basic Economic Order Quantity (EOQ) model assumes that inventory receipt is instantaneous, there are no quantity discounts, and that with proper ordering, there will be no shortages. It does not assume that only an integer number of orders can be made each year; orders can be of any size that optimizes the inventory costs.

Which of the Following Is Not an Assumption for the Basic