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

question 138

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:

Normal Distribution

A bell-shaped curve that describes the spread of a characteristic throughout a population; it is symmetric and depicts that data near the mean are more frequent in occurrence.

Null Hypothesis

The hypothesis that there is no significant difference or effect, often denoted H0, in statistical hypothesis testing.

Mean MPG

The average miles per gallon achieved by a vehicle, calculated by summing the miles per gallon for all vehicles in the sample and dividing by the number of vehicles.

Test Statistic

A measure calculated from sample data used to determine the extent to which the null hypothesis should be rejected or not.