Which one of the following is not an assumption of the EOQ model?
A) Decisions for one item can be made independently of decisions made for other items.
B) There is no uncertainty in lead-time.
C) The amount of an order received is exactly equal to what was ordered, without any "short shipments" from a supplier or scrap losses in the shop.
D) Quantity discounts can be taken advantage of for large lot sizes.

Question

Quizplus · Accepted Answer

While the EOQ model does take into consideration the cost implications of ordering larger quantities, it does not assume that quantity discounts are available or can be taken advantage of for large lot sizes.

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