Please choose one or more of the following statements that is/are incorrect : a) When ordering quantity
Question:
Please choose one or more of the following statements that is/are incorrect :
a) When ordering quantity deviates a little from EOQ, the resulting annual total cost will be close to optimal annual total cost.
b) In the EOQ model with positive lead time, we always order when on hand inventory is depleted.
c) When unit procurement cost is constant, the optimal ordering quantity in the EOQ model is independent of unit procurement cost.
d) When unit procurement cost gets discounted for large ordering quantity, the optimal ordering quantity will depend on the unit procurement cost.
e) When unit procurement cost gets discounted for large ordering quantity, the unit holding cost will be affected.
Essentials of Business Analytics
ISBN: 978-1285187273
1st edition
Authors: Jeffrey Camm, James Cochran, Michael Fry, Jeffrey Ohlmann, David Anderson, Dennis Sweeney, Thomas Williams