Which of the following is not an assumption of the basic EOQ model?
A)Lead time does not vary.
B)Only one product is involved.
C)Holding costs are independent of price.
D)Each order is received in a single delivery.
E)There are no quantity discounts.

Question

Quizplus · Accepted Answer

The basic EOQ model assumes that lead time does not vary, only one product is involved, each order is received in a single delivery, and there are no quantity discounts. However, it does not assume that holding costs are independent of price. In fact, the basic EOQ model includes holding costs as a component of the total cost equation.

Which of the Following Is Not an Assumption of the Basic