Question: The basic EOQ model is quite robust ( works reasonably well in many scenarios ) because: Question 4 options: It is quite easy to account
The basic EOQ model is quite robust works reasonably well in many scenarios because:
Question options:
It is quite easy to account for holding and ordering costs
It accounts for variable demand and variable lead time
The flat bottomed total cost curve implies that straying away a little from the EOQ number would not increase costs significantly
The assumptions of the basic EOQ model are met reasonably well in most businesses.
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