Question: The Production Order Quantity Model differs from the basic Economic Order Quantity because in the POQ Model: quantity discounts are not possible stockouts can be

The Production Order Quantity Model differs from the basic Economic Order Quantity because in the POQ Model:

  1. quantity discounts are not possible
  2. stockouts can be completely avoided if orders are placed at the right time
  3. demand is not assumed to be known, constant, and independent
  4. it does not require the instantaneous receipt assumption

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