Which of the Following Is Not an Assumption Underlying Economic

question 32

Multiple Choice

Which of the following is not an assumption underlying economic order quantity?

• A) Demand is known and constant.
• B) The order is delivered as needed.
• C) On average one-half of inventory is in stock at any one time.
• D) Acquisition cost per unit is constant.

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Definitions:

Lead Time

The period required to complete a process or fulfill an order before the actual delivery or deployment.

Lag Time

The delay between two related activities or processes, such as the time between the completion of one task and the start of another in a project.

Early Start Date

The earliest date on which a task or project activity can begin, taking into account constraints and preceding activities.

Lag Time

The delay between tasks that have a dependency, where one task cannot start until a certain period after the previous task has finished.