Which of the Following Is an Assumption of the Basic

question 101

Multiple Choice

Which of the following is an assumption of the basic EOQ model?

• A) Lead time is unknown.
• B) Demand is known and constant.
• C) Orders can arrive in partial shipments.
• D) Quantity discounts are considered.
• E) Lost sales are allowed, but not back orders.

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Definitions:

ERP

stands for Enterprise Resource Planning, which is a type of software that organizations use to manage and integrate important parts of their businesses.

SCM

Stands for Supply Chain Management, which involves the oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer.

FAIS

Stands for Financial Accounting Information System, a specialized system that collects, processes, stores, and disseminates financial information.

Fishbowl System

An inventory management system that allows businesses to monitor and manage their inventory in real-time, enhancing accuracy and efficiency.