Which of the following is not an assumption of the (R,Q)model?
A)Each application involves a single stable product
B)The inventory level is under continuous review
C)The only decisions to be made are to choose R and Q
D)The lead time is fixed
E)If a stockout occurs,the excess demand is backlogged

Question

Which of the following is not an assumption of the (R,Q)model?
A)Each application involves a single stable product 
B)The inventory level is under continuous review 
C)The only decisions to be made are to choose R and Q 
D)The lead time is fixed 
E)If a stockout occurs,the excess demand is backlogged

Quizplus · Accepted Answer

The (R,Q) model assumes a constant lead time. However, it does not assume that the lead time is fixed. The lead time can vary due to various reasons like transportation delays or production variations. Therefore, option D is not an assumption of the (R,Q) model.

Which of the Following Is Not an Assumption of the (R,Q)model