No more than 3 items are involved which of the following is NOT one of the assumptions of the basic EOQ model quantity discounts are available dairy items fresh fruit and newspapers are items that. For example while there is very likelihood of a difference between actual and estimated demands for a particular item of inventory doubts also remain for instantaneous replenishment of inventories.

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### Only one product is involved.

**Which of the following is not one of the assumptions of the basic eoq model?**. EOQ Analysis Over Time. All of the above are necessary assumptions. Chapter 15 – Independent Demand Inventory 21.

Quantity discounts are available. Without these assumptions the EOQ model cannot work to its optimal potential. Lead time does not vary.

Each order is received in a single delivery. Decrease by half B. Economic order quantity EOQ is the ideal order quantity that a company should make for its inventory given a set cost of production demand rate and other variables.

One aspect of inventory analysis that can be confusing is the time frame encompassed by the analysis. The cost of the ordering remains constant. Each order is received in a single delivery.

Annual demand requirements are known B. The maximum stock balance equals the economic order quantity and it is consuming at a constant rate until reaching zero. Which of the following is not one of the assumptions of the basic EOQ model.

Quantity discounts are available. The various assumptions on which the EOQ Model is built do not hold true. All of the above Difficulty.

Quantity discounts are available. In the basic EOQ model if the lead time doubles the EOQ will. The lead time is not fluctuating lead time is the latency time it takes a process to.

Which of the following is not one of the assumptions of the basic EOQ model. The key assumptions include. Which of the following is not one of the assumptions of the basic EOQ model.

All of the above are necessary. Constant unit price- the EOQ model assumes that the purchase price. Which of the following is not an assumption of basic EOQ model Options Annual demand carrying cost and ordering cost can be estimated and is constant Half of order quantity is considered as safety stock Stock out has no effect Quantity discounts does not exist.

Only one product is involved. Annual demand requirements are known and constant. As we can see the EOQ model is always the best solution.

Then when the basic assumptions themselves prove invalid the EOQ. The EOQ can be calculated with the help of a mathematical formula. The choice between P and Q systems should be based on.

Unit production cost v. Type of record keeping C. Operations Management – 5th Canadian Edition – Stevenson et al.

Which of the following is not one of the assumptions of the basic EOQ model. If basic assumptions of the model are met the graph of inventory consumption and restocking looks as follows. Following assumptions are implied in the calculation.

Quantity discounts are available. Economic order quantity is defined as the ordering quantity which minimises the balance of cost between inventory holding costs and re-order costsUnderlying assumptions in an Economic Order Quantity model are. Therefore we will digress for just a moment to discuss this aspect of EOQ analysis.

The basic EOQ model makes the following assumptions. That there is a known constant ordering cost That rates of demand are known. All of the above are necessary assumptions.

I The demand is known and constant over the year. Which of the following is not one of the assumptions of the basic EOQ model. Annual demand requirements are known and constant.

The demand rate for the year is known and evenly spread throughout the year. At this time restocking is made by the whole batch. The EOQ is based on the total production costs for a single item for a period of time such as one year.

Quantity discounts are available. And a per unit per period holding charge r fraction of v. Timing of replenishment B.

Iii The holding cost is constant per unit per year. Following are the underlying assumptions for the EOQ model. Iv The purchase cost is constant Thus no quantity discount v Back orders are not allowed.

That there is a known constant stockholding cost. Lead time does not vary. Lead time does not vary.

Cost of the item D. Constant or uniform demand- although the EOQ model assumes constant demand demand may vary from day to day. Remain the same D.

Each order is received in a single delivery. Annual demand requirements are known and constant. Increase but not double Difficulty.

Ii The ordering cost is constant per order and certain. Lead time does not vary. Each order is received in a single delivery.

Each order is received in a single delivery. Quantity discounts are available. Which of the following is not one of the assumptions of the basic EOQ model.

Lead time does not vary. Annual demand requirements are known and constant. If demand is not known in advance- the model must be modified through the inclusion of safe stock.

Recall that previously we developed the EOQ model regardless of order size Q and time t Now we will verify this condition. Infinite production rate resulting in immediate supply when the order is placed. Each order is received in a single delivery.

Constant and continuous demand rate D which is known with certainty. All of the above are necessary assumptions. Lesson 17 Inventory Management 60.

Annual demand requirements are known. Lead time does not vary.

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