Which One of the Following Is Not an Assumption of the EOQ

question 188

Multiple Choice

Which one of the following is not an assumption of the EOQ model?

• A) Decisions for one item can be made independently of decisions made for other items.
• B) There is no uncertainty in lead-time.
• C) The amount of an order received is exactly equal to what was ordered, without any "short shipments" from a supplier or scrap losses in the shop.
• D) Quantity discounts can be taken advantage of for large lot sizes.

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Definitions:

Senior Employee

A senior employee holds a high-ranking position within an organization, typically involving significant responsibilities or decision-making authority.

Properly Perform

To fulfill or execute tasks and obligations in accordance with agreed standards or contracts.

Constructive Dismissal

A situation where an employee resigns due to the employer's behavior making it impossible to continue working, essentially a forced resignation.

Punitive Damages

Damages awarded by a court to punish a wrongdoer. Not normally awarded for ordinary breach of contract.