Which of the following is not an assumption associated with the basic economic order quantity (EOQ) model?
no inventory in transit
an infinite planning horizon
stockouts are permitted
a constant and known replenishment or lead time
constant demand
all are basic assumptions with the basic EOQ model
Expert Answer
Answer- all are basic assumptions with the basic EOQ model. The economic order quantity (EOQ) is a model that is used to calculate the optimal quantity that can be purchased or produced to minimize the cost of both the carrying inventory and the processing of purchase orders or production set-ups.
Without the following assumptions, the EOQ model
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