Which of the Following Statements with Regard to the Economic

question 67

Multiple Choice

Which of the following statements with regard to the economic production quantity (EPQ) model is FALSE?

• A)It was developed in 1918.
• B)The EOQ model is based on the EPQ model.
• C)It assumes that the company will produce the items.
• D)It assumes that lead time is known and is constant.

---

Definitions:

Output Measures

Metrics or indicators used to assess the performance, productivity, or quality of a product or process.

Individual Interaction

Involves the communication or exchange between individuals, often considered in the context of social, economic, or professional relationships.

Not-Invented-Here Problem

The tendency of organizations or teams to avoid using or buying products, research, or knowledge from outside sources because they were not created internally.

Hoarding Of Expertise

The practice of keeping knowledge, skills, or information confined to an individual or a limited group, preventing wider dissemination and use.