Which of the Following Is Not an Assumption of the Economic

question 142

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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