Which of the Following Is Not an Assumption of the Economic

question 108

Multiple Choice

Which of the following is not an assumption of the economic order quantity model shown below? Q? = $\sqrt { \frac { 2 \cdot D \cdot S } { H } }$

• A) Demand is known, constant, and independent.
• B) Lead time is known and constant.
• C) Quantity discounts are not possible.
• D) Production and use can occur simultaneously.
• E) The only variable costs are setup cost and holding (or carrying) cost.

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Definitions:

Equipment Used

Equipment used refers to the tools, machinery, and devices employed in the execution of a specific task or operation.

Productivity

The measure of how efficiently production inputs, such as labor and materials, are converted into outputs, or goods and services.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a given period of time.

Shifts

Designated working periods for employees, defined by specific start and end times, to ensure continuous operation or coverage.