The EOQ model is relatively insensitive to minor violations of the basic assumptions.

Question

Quizplus · Accepted Answer

The basic assumptions of the EOQ model include constant demand, known and fixed ordering and holding costs, and no stockouts or backorders. While these assumptions are ideal and not always realistic, research has shown that the EOQ model is still effective even with minor deviations from these assumptions. However, significant deviations may require modifications to the model or the use of alternative inventory models.

The EOQ Model Is Relatively Insensitive to Minor Violations of the Basic