Which one of the following is not an assumption of the basic EOQ model?
A)Demand is unknown and variable
B)Lead times are fixed and constant
C)Inventory holding cost is based on average inventory
D)There are no backorders

Question

Quizplus · Accepted Answer

The basic Economic Order Quantity (EOQ) model assumes that demand is known and constant, which contradicts choice A, making it the correct answer. The other options (B, C, D) are indeed assumptions of the EOQ model.

Which One of the Following Is Not an Assumption of the Basic