Which of the following is NOT an assumption of the EOQ model? a. It is possible to receive a purchase discount if the order quantity is sufficiently large. b. There is a fixed cost to submit each order that is independent of the amount ordered. c. Demand occurs at a constant rate per unit of time. d. There is a cost to hold each unit of inventory per unit of time.

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Answer 1

Textbook Question

Chapter 12, Problem 1CQ

Which of the following is NOT an assumption of the EOQ model?

a. It is possible to receive a purchase discount if the order quantity is sufficiently large.
b. There is a fixed cost to submit each order that is independent of the amount ordered.
c. Demand occurs at a constant rate per unit of time.
d. There is a cost to hold each unit of inventory per unit of time.

Expert Solution & Answer

Summary Introduction

To identify: The feature that is not an assumption of the EOQ model.

Explanation of Solution

Correct option: (a)

Correct answer:

It is possible to receive a purchase discount if the order quantity is sufficiently large.

Justification:

Economic order quantity (EOQ) is the optimum purchase quantity of an item at a single point during a period to minimum the annual cost for ordering and carrying the items in inventory. It is also known as the optimum lot size. The above assumption is not true with regards to the EOQ model because, the EOQ is always calculated under the assumption that there are no purchase quantity discounts unless otherwise they are explicitly mentioned by the seller.

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Answer 2

Textbook Question

Chapter 12, Problem 1CQ

Which of the following is NOT an assumption of the EOQ model?

a. It is possible to receive a purchase discount if the order quantity is sufficiently large.
b. There is a fixed cost to submit each order that is independent of the amount ordered.
c. Demand occurs at a constant rate per unit of time.
d. There is a cost to hold each unit of inventory per unit of time.

Expert Solution & Answer

Summary Introduction

To identify: The feature that is not an assumption of the EOQ model.

Explanation of Solution

Correct option: (a)

Correct answer:

It is possible to receive a purchase discount if the order quantity is sufficiently large.

Justification:

Economic order quantity (EOQ) is the optimum purchase quantity of an item at a single point during a period to minimum the annual cost for ordering and carrying the items in inventory. It is also known as the optimum lot size. The above assumption is not true with regards to the EOQ model because, the EOQ is always calculated under the assumption that there are no purchase quantity discounts unless otherwise they are explicitly mentioned by the seller.

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Answer 3

Textbook Question

Chapter 12, Problem 1CQ

Which of the following is NOT an assumption of the EOQ model?

a. It is possible to receive a purchase discount if the order quantity is sufficiently large.
b. There is a fixed cost to submit each order that is independent of the amount ordered.
c. Demand occurs at a constant rate per unit of time.
d. There is a cost to hold each unit of inventory per unit of time.

Expert Solution & Answer

Summary Introduction

To identify: The feature that is not an assumption of the EOQ model.

Explanation of Solution

Correct option: (a)

Correct answer:

It is possible to receive a purchase discount if the order quantity is sufficiently large.

Justification:

Economic order quantity (EOQ) is the optimum purchase quantity of an item at a single point during a period to minimum the annual cost for ordering and carrying the items in inventory. It is also known as the optimum lot size. The above assumption is not true with regards to the EOQ model because, the EOQ is always calculated under the assumption that there are no purchase quantity discounts unless otherwise they are explicitly mentioned by the seller.

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Answer 4

Textbook Question

Chapter 12, Problem 1CQ

Which of the following is NOT an assumption of the EOQ model?

a. It is possible to receive a purchase discount if the order quantity is sufficiently large.
b. There is a fixed cost to submit each order that is independent of the amount ordered.
c. Demand occurs at a constant rate per unit of time.
d. There is a cost to hold each unit of inventory per unit of time.

Expert Solution & Answer

Summary Introduction

To identify: The feature that is not an assumption of the EOQ model.

Explanation of Solution

Correct option: (a)

Correct answer:

It is possible to receive a purchase discount if the order quantity is sufficiently large.

Justification:

Economic order quantity (EOQ) is the optimum purchase quantity of an item at a single point during a period to minimum the annual cost for ordering and carrying the items in inventory. It is also known as the optimum lot size. The above assumption is not true with regards to the EOQ model because, the EOQ is always calculated under the assumption that there are no purchase quantity discounts unless otherwise they are explicitly mentioned by the seller.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

Summary Introduction

To identify: The feature that is not an assumption of the EOQ model.

Explanation of Solution

Correct option: (a)

Correct answer:

It is possible to receive a purchase discount if the order quantity is sufficiently large.

Justification:

Economic order quantity (EOQ) is the optimum purchase quantity of an item at a single point during a period to minimum the annual cost for ordering and carrying the items in inventory. It is also known as the optimum lot size. The above assumption is not true with regards to the EOQ model because, the EOQ is always calculated under the assumption that there are no purchase quantity discounts unless otherwise they are explicitly mentioned by the seller.

Answer 8

Expert Solution & Answer

Summary Introduction

To identify: The feature that is not an assumption of the EOQ model.

Explanation of Solution

Correct option: (a)

Correct answer:

It is possible to receive a purchase discount if the order quantity is sufficiently large.

Justification:

Economic order quantity (EOQ) is the optimum purchase quantity of an item at a single point during a period to minimum the annual cost for ordering and carrying the items in inventory. It is also known as the optimum lot size. The above assumption is not true with regards to the EOQ model because, the EOQ is always calculated under the assumption that there are no purchase quantity discounts unless otherwise they are explicitly mentioned by the seller.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Summary Introduction

To identify: The feature that is not an assumption of the EOQ model.

Answer 12

Explanation of Solution

Correct option: (a)

Correct answer:

It is possible to receive a purchase discount if the order quantity is sufficiently large.

Justification:

Economic order quantity (EOQ) is the optimum purchase quantity of an item at a single point during a period to minimum the annual cost for ordering and carrying the items in inventory. It is also known as the optimum lot size. The above assumption is not true with regards to the EOQ model because, the EOQ is always calculated under the assumption that there are no purchase quantity discounts unless otherwise they are explicitly mentioned by the seller.

Answer 13

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