Given the same demand, setup/ordering costs, and carrying costs, the EPQ calculated using incremental replenishment will be ____________ if instantaneous replenishment was assumed.
A)greater than the EOQ
B)equal to the EOQ
C)smaller than the EOQ
D)greater than or equal to the EOQ
E)smaller than or equal to the EOQ

Question

Quizplus · Accepted Answer

The Economic Production Quantity (EPQ) model accounts for incremental replenishment, which typically results in a larger order quantity compared to the Economic Order Quantity (EOQ) model that assumes instantaneous replenishment.

Given the Same Demand, Setup/ordering Costs, and Carrying Costs, the EPQ