Which of the following is not an assumption of the traditional economic order quantity (EOQ) model?
A) Holding and ordering costs are stable and known.
B) Demand is constant and known.
C) Supply lead time is constant and known.
D) Quantity discounts are possible.

Question

Quizplus · Accepted Answer

The traditional EOQ model assumes that quantity discounts are not possible, as it calculates the optimal order quantity without taking into account any discounts that may be available.

Which of the Following Is Not an Assumption of the Traditional