Which is not a true assumption in the basic EOQ model?
A)Each order is received in a single delivery.
B)Lead time does not vary.
C)No more than three items are involved.
D)Usage rate is constant.
E)No quantity discounts.

Question

Quizplus · Accepted Answer

The basic Economic Order Quantity (EOQ) model does not assume that no more than three items are involved. It can be applied to any number of items as long as the other assumptions (such as constant usage rate, single delivery per order, constant lead time, and no quantity discounts) hold true.

Which Is Not a True Assumption in the Basic EOQ