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While the Assumptions Make the EOQ System Easier to Use

Question 3

Multiple Choice

While the assumptions make the EOQ system easier to use, the model becomes less reflective of reality.The incorporation of safety stock relaxes the __________ assumption.The addition of back orders relaxes the __________ assumption.


A) constant lead time/no demand uncertainty
B) constant lead time/no shortages allowed
C) no shortages allowed/no demand uncertainty
D) no demand uncertainty/no shortages allowed

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