Because the contemporary business world is characterized by a great deal of uncertainty,the basic EOQ model can be calculated under conditions of lead time uncertainty.

Question

Quizplus · Accepted Answer

The statement is true. The basic EOQ model can be applied even in situations of lead time uncertainty since it assumes a constant demand rate and a constant ordering cost. However, when there is lead time uncertainty, safety stock may need to be considered to ensure adequate inventory levels.

Because the Contemporary Business World Is Characterized by a Great