One of the assumptions of the EPQ (Economic Production Quantity)model is ______.
A)that there are several different products involved
B)that production runs to replenish inventory occur at regular intervals
C)that the lead time for the receipt of orders varies depending on the order
D)that there are large discounts available at higher volumes

Question

Quizplus · Accepted Answer

The EPQ model assumes that production runs occur at regular intervals to replenish inventory, which means that a fixed quantity of items is produced each time. The other options are not assumptions of the EPQ model.

One of the Assumptions of the EPQ (Economic Production Quantity)model