Which of the Following Is Not an Assumption of the Economic

question 4

Multiple Choice

Which of the following is not an assumption of the economic order quantity model?

• 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:

Management by Objectives (MBO)

A strategic management model focusing on setting and agreeing to specific objectives between management and employees to improve organization performance.

Work Efforts

The measure of the amount of energy, time, and resources employees put into their tasks and roles at work.

Agreed-Upon Objectives

Goals or targets that have been mutually established and accepted by all parties involved in a project or operation.

Consumption Possibilities Frontier

A curve depicting the range of goods and services that a society can consume, given its resources and technology.