Which of these statements about the production order quantity model is false?
A) The production order quantity model is appropriate when the assumptions of the basic EOQ model are met, except that receipt is noninstantaneous.
B) Because receipt is noninstantaneous, some units are used immediately, not stored in inventory.
C) Average inventory is less than one-half of the production order quantity.
D) All else equal, the smaller the ratio of demand rate to production rate, the larger is the production order quantity.
E) The production order quantity assumes units are produced and sold simultaneously.

Question

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The Answer of Which of these statements about the production order quantity model is false?
A) The production order quantity model is appropriate when the assumptions of the basic EOQ model are met, except that receipt is noninstantaneous.
B) Because receipt is noninstantaneous, some units are used immediately, not stored in inventory.
C) Average inventory is less than one-half of the production order quantity.
D) All else equal, the smaller the ratio of demand rate to production rate, the larger is the production order quantity.
E) The production order quantity assumes units are produced and sold simultaneously.

Which of These Statements About the Production Order Quantity Model