Even Though the Economic Order Quantity (EOQ)is Optimal Only When

question 51

Multiple Choice

Even though the economic order quantity (EOQ) is optimal only when five assumptions are satisfied,it serves as a reasonable first approximation even when these assumptions do not quite apply.Which one of the following is NOT an assumption of the EOQ?

• A) Decisions for one item can be made independently of decisions made for other items.
• B) There is no uncertainty in lead time.
• C) The amount of an order received is exactly equal to what was ordered, without any "short shipments" from a supplier or scrap losses in the shop.
• D) Quantity discounts can be taken advantage of for large lot sizes.

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Definitions:

Gamma Radiation

High-energy electromagnetic radiation emitted from atomic nuclei during radioactive decay, with no mass and no charge.

Penetrating Power

The ability of a type of radiation to pass through material, affecting the extent to which different types of radiation can penetrate materials to different depths.

Belt of Stability

A term used in nuclear physics to describe the region on a chart of nuclides where stable nuclei exist, based on their neutron to proton ratio.

Beta Decay

A radioactive decay process where a beta particle (electron or positron) is emitted from an atomic nucleus, altering the original element to a different one.