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:

Iconic Sensory Memory

The visual component of sensory memory, allowing the mind to retain an image of a visual stimulus for a brief period after the actual stimulus is gone.

Tactile Sensory Memory

The brief retention of sensory information related to touch, part of the sensory memory that allows for the preservation of tactile impressions for a short time after the actual stimulus has ended.

Automatic Encoding

Tendency of certain kinds of information to enter long-term memory with little or no effortful encoding.

Long-term Memory

The phase of memory that is capable of storing information for extended periods of time, ranging from minutes to a lifetime.