When Is the Basic EOQ Model a Special Case of the EPQ

question 14

Multiple Choice

When is the basic EOQ model a special case of the EPQ model?

• A) The demand per day approaches the demand per year.
• B) The production rate per day approaches 0.
• C) The production rate per day approaches infinity.
• D) The back order cost approaches infinity.
• E) d/p = 1.

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Definitions:

OASDI

Old-Age, Survivors, and Disability Insurance; a comprehensive federal benefits program that provides benefits to retirees, disabled people, and survivors of deceased workers.

Medicare

A federal health insurance program in the United States for people aged 65 and over, as well as for certain younger people with disabilities.

Calendar Quarter

A period of three months on the Gregorian calendar that is used in business and finance to split the year into four parts.

Gross Pay

The total amount of money an employee earns before any deductions are taken out such as taxes or retirement contributions.