Of the following EOQ model assumptions,the most limiting is
A) uniform demand.
B) constant unit price.
C) constant ordering costs.
D) independent orders.

Question

Quizplus · Accepted Answer

While all four assumptions are important to the EOQ model, the most limiting assumption is uniform demand. If demand fluctuates significantly over time, then the EOQ model will not accurately predict the optimal order quantity and may result in excess inventory or stockouts. The other assumptions (constant unit price, constant ordering costs, and independent orders) are more realistic and less likely to be violated in practice.

Of the Following EOQ Model Assumptions,the Most Limiting Is