Which of the following statements is INCORRECT regarding the EOQ model?
A) EOQ assumes that the lead times are known and fixed.
B) EOQ assumes that the demand rates are constant and are known in advance.
C) EOQ calculations are based on a constant unit item cost and do not take discounts or rebates into consideration
D) The ordering cost or the setup cost is dependent on the number of items ordered or manufactured.
Correct Answer:
Verified
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