The Production Order Quantity model differs from the Economic Order Quantity$($EOQ$)$ model because in a production$$ environment,

Part $2$

A$.$

companies are unable to avoid stockouts$($shortages$).$

B$.$

inventory builds up over$$ time, as it is being produced.

C$.$

holding cost per unit is no longer important.

D$.$

demand for the item is no longer predictable.