Which of the following is NOT an assumption of the EOQ model? a. Continuous review b....
Which of the following is NOT an assumption of the EOQ model?
|
a. Continuous review |
||
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b. Demand is known and constant |
||
| c. |
Lead time is known and constant |
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| d. |
All demand is satisfied |
|
| e. |
All of the above are assumptions of the EOQ model |
Homework Answers
All of the above assumptions goes into forming an EOQ model. It is a continuous review process and can only be undertaken when there is no fluctuation in demand and the lead time is also known and constant thereby allowing no disruption in the production process. Moreover, it is also assumed that the production process could be replenished again once all the demand is satisfied.
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Which of the following is NOT an assumption of the EOQ
model?
a. Continuous review
b....
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For questions 26-75, choose the most appropriate choice 26. In the A-B-C classification system, items represent 50%-60% of all items but only 10%-15% of the total value? A. A items B. B items C. C items D. A items plus B items E. B items plus C items 27. If no variations in demand during the item's lead time exist and no safety stock is needed, then the ROP will equal to: A. the EOC B. expected demand during lead...
In the basic EOQ model, which of the following could lead to stock-outs? smaller than average...
In the basic EOQ model, which of the following could lead to stock-outs? smaller than average lead time higher consumption during the lead time higher reorder points lower consumption during the lead time
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The economic order quantity (EOQ) model is a classical model used for controlling inventory and s...
The economic order quantity (EOQ) model is a classical model used for controlling inventory and satisfying demand. Costs included in the model are holding cost per unit, ordering cost, and the cost of goods ordered. The assumptions for that model are that only a single item is considered, that the entire quantity ordered arrives at one time, that the demand for the item is constant over time, and that no shortages arc allowed. Suppose we relax the first assumption and...
In the basic EOQ model, if the annual demand increases by nine times and all other...
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