Which of the Following Is NOT an Assumption of the Economic

question 69

Multiple Choice

Which of the following is NOT an assumption of the economic order quantity model shown below? Q* =

• A)Demand is known,constant,and independent.
• B)Lead time is known and constant.
• C)Quantity discounts are not possible.
• D)Production and use can occur simultaneously.
• E)The only variable costs are setup cost and holding (or carrying)cost.

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Definitions:

Blood Types

Categories of blood based on the presence or absence of antibodies and inherited antigenic substances on the surface of red blood cells.

Group

A number of individuals assembled together or having some unifying relationship.

Independent

A term in statistics indicating that two variables have no association or influence on each other.

Deck

A collection of slides compiled for a presentation, or a set of cards used in playing card games.