Which of the Following Is NOT a Key Assumption Underlining

question 84

Multiple Choice

Which of the following is NOT a key assumption underlining the classic economic order quantity (EOQ) model?

• A) The entire order quantity arrives in the inventory at one time.
• B) There are only two types of relevant costs: order/setup and inventory holding.
• C) Demand is assumed to be stochastic.
• D) Stockouts are not allowed.

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