Which of These Statements About the Production Order Quantity Model

question 8

Multiple Choice

Which of these statements about the production order quantity model is false?

• A) The production order quantity model is appropriate when the assumptions of the basic EOQ model are met, except that receipt is noninstantaneous.
• B) Because receipt is noninstantaneous, some units are used immediately, not stored in inventory.
• C) Average inventory is less than one-half of the production order quantity.
• D) All else equal, the smaller the ratio of demand rate to production rate, the larger is the production order quantity.
• E) None of the above is false.

---

Definitions:

Cheating

Engaging in dishonest practices in order to gain an unfair advantage, often in an academic or relationship context.

Common Knowledge

Information that is generally known by a significant number of people and isn’t attributed to one source.

Paraphrasing

Expressing the meaning of the words of the speaker or writer using different words, especially to achieve greater clarity.

Bribing

The act of giving or receiving something of value in exchange for some kind of influence or action in return, that is often unethical or illegal.