The economic production lot size model is appropriate when
A)demand exceeds the production rate.
B)there is a constant supply rate for every period,without pause.
C)ordering cost is equivalent to the production setup cost.
D)All of these are correct.

Question

Quizplus · Accepted Answer

The economic production lot size model assumes that the production setup cost is equivalent to the ordering cost, which is a key condition for its application.

The Economic Production Lot Size Model Is Appropriate When