Question: 1. What assumptions are made when using the simplest version of the economic order quantity (EOQ) decision model? OPTIONS:- WHICH AMONG IS THE RIGHT ONE
1. What assumptions are made when using the simplest version of the economic order quantity (EOQ) decision model?
OPTIONS:- WHICH AMONG IS THE RIGHT ONE
A. Purchasing cost per unit is unaffected by the quantity ordered.
B. The same quantity is ordered at each reorder point and no stockouts occur.
C. Demand, ordering costs, carrying costs, and the purchase-order lead time are certain. Also, costs of quality are considered only to the extent that these costs affect ordering costs or carrying costs.
D. All of the above are correct.
E. None of the above are correct.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
