If the costs (S and H) and demands (D) are the same, which of the following is true with regard to the EPQ model as compared to the EOQ model?
A) The lot size under the EPQ model is bigger than under the EOQ model.
B) The maximum inventory level is higher under the EPQ model than under the EOQ model.
C) The two models use different formulas to compute annual ordering cost.
D) The inventory depletion rate is not the same for both models.
E) Both models use the same formula to compute annual holding cost.

Question

Quizplus · Accepted Answer

The Answer of If the costs (S and H) and demands (D) are the same, which of the following is true with regard to the EPQ model as compared to the EOQ model?
A) The lot size under the EPQ model is bigger than under the EOQ model.
B) The maximum inventory level is higher under the EPQ model than under the EOQ model.
C) The two models use different formulas to compute annual ordering cost.
D) The inventory depletion rate is not the same for both models.
E) Both models use the same formula to compute annual holding cost.

If the Costs (S and H) and Demands (D) Are