All of the following are true regarding the Economic Order Quantity model except which one?
A)It determines the cost- minimizing quantity managers should order to keep in inventory.
B)It accounts for seasonal changes in demand.
C)It assumes demand is known with certainty.
D)It assumes demand is spread evenly over a time period.

Question

Quizplus · Accepted Answer

The Economic Order Quantity model does not account for seasonal changes in demand, as it assumes demand is spread evenly over a time period.

All of the Following Are True Regarding the Economic Order