Which of the following is not true for the economic production quantity model?
A)Usage rate is constant.
B)Production rate exceeds usage rate.
C)Run size exceeds maximum inventory.
D)There are no ordering or setup costs.
E)Average inventory is one-half maximum inventory.

Question

Quizplus · Accepted Answer

The economic production quantity model assumes there are ordering or setup costs; it does not assume these costs are nonexistent.

Which of the Following Is Not True for the Economic