Which of the Following Is a Difference Between the EOQ

question 99

Multiple Choice

Which of the following is a difference between the EOQ and the EPQ models?

• A)In the EOQ model,additional inventory is received all at once,but not in the EPQ model.
• B)In the EOQ model,there are quantity discounts available,but not in the EPQ model.
• C)In the EOQ model,lead time is known,but not in the EPQ model.
• D)In the EOQ model,shortages are allowed,but not in the EPQ model.

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Definitions:

Ignoring Base Rates

Ignoring base rates is a cognitive bias that involves disregarding or underestimating general information (base rates) in favor of specific individual information when making decisions or judgments.

Availability Bias

A cognitive bias that causes people to overestimate the likelihood of events based on their availability in memory, often leading to skewed decision-making.

Belief Perseverance

The tendency to cling to one's initial belief even after receiving new information that contradicts or disconfirms the basis of that belief.

Confirmation Bias

A predisposition to identify, comprehend, prioritize, and recollect facts in ways that corroborate one’s existing beliefs or suppositions.