Which Is Not a True Assumption in the Basic EOQ

question 9

Multiple Choice

Which is not a true assumption in the basic EOQ model?

• A)Each order is received in a single delivery.
• B)Lead time does not vary.
• C)No more than three items are involved.
• D)Usage rate is constant.
• E)No quantity discounts.

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Definitions:

Product

A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value.

Four Steps

A general process or procedure that involves four distinct stages or phases, often used in a variety of contexts such as problem-solving or project management.

Market Segmentation

The process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers based on some type of shared characteristics.

Importance

The relevance or significance of something in a given context, often determining the priority or attention it receives.