Which of the Following Statements Regarding the Production Order Quantity

question 97

Multiple Choice

Which of the following statements regarding the production order quantity model is TRUE?

• A) It applies only to items produced in the firm's own production departments.
• B) It relaxes the assumption that all the order quantity is received at one time.
• C) It relaxes the assumption that the demand rate is constant.
• D) It minimizes the total production costs.
• E) It minimizes inventory.

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