Which of the Following Statements About the EOQ Inventory Model

question 11

Multiple Choice

Which of the following statements about the EOQ inventory model assumptions is incorrect?

• A)Demand for the product is constant and known with certainty.
• B)The lead time is a variable.
• C)All inventories in the order arrive at the same time.
• D)Total ordering cost is a variable.

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Definitions:

In Transit

The status of goods or people being transported from one place to another; during the journey.

Carrier

A company or individual responsible for the transportation of goods or people.

Substantially Conforming

A term that refers to goods, services, or performance that meets contract specifications closely enough to fulfill the agreement's requirements.

Conforming Goods

Goods that meet the specifications and standards outlined in a contract, satisfying the terms of the agreement between buyer and seller.