The simplest version of the economic order quantity decision model assumes all of the following EXCEPT
A)the same fixed quantity is ordered at each reorder point.
B)demand ordering costs and carrying costs are certain.
C)purchase order lead time is certain.
D)no stockouts occur.
E)purchasing costs per unit depend on the quantity ordered.

Question

Quizplus · Accepted Answer

The model assumes that purchasing costs per unit are constant, not dependent on the quantity ordered.

The Simplest Version of the Economic Order Quantity Decision Model