If the Costs (S and H) and Demands (D) Are

question 32

Multiple Choice

If the costs (S and H) and demands (D) are the same, which of the following is not true with regard to the EPQ model as compared to the EOQ model?

• A) The EPQ model produces a lower total annual cost.
• B) The maximum inventory level is lower under the EPQ model than under the EOQ model.
• C) Both models use the same formula to compute annual ordering cost.
• D) The inventory depletion rate is the same for both models.
• E) Both models use the same formula to compute annual holding cost.

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