When is the basic EOQ model a special case of the EPQ model?
A) The demand per day approaches the demand per year.
B) The production rate per day approaches 0.
C) The production rate per day approaches infinity.
D) The back order cost approaches infinity.
E) d/p = 1.

Question

Quizplus · Accepted Answer

The basic Economic Order Quantity (EOQ) model becomes a special case of the Economic Production Quantity (EPQ) model when the production rate per day approaches infinity. In this scenario, the production is instantaneous, which aligns with the EOQ assumption of immediate availability of the entire order quantity.

When Is the Basic EOQ Model a Special Case of the EPQ