Which of the following is a necessity for common EOQ methodology but not simulations?
A) constant lead time
B) variable demand
C) variable holding costs
D) A and B
E) A, B and C

Question

Quizplus · Accepted Answer

Constant lead time is necessary for common EOQ methodology to calculate the optimal order quantity. However, this is not a requirement for simulations, as they can account for variable lead times. The other options (B and C) are not restrictions for either methodology.

Which of the Following Is a Necessity for Common EOQ