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.

Question

Want to see more full solutions like this?

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.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

By signaling their willingness to share information about their interests, but not their BATNA, a negotiator can capitalize on the powerful principle of reciprocity. Which of the following situations best illustrates the reciprocity principle? Group of answer choices A. A car salesman shares information about the town where he grew up, and his custo.mer shares that he also grew up near that town B. A cab driver takes a customer to her hotel and picks up a new customer at the hotel. C. A woman compliments a friend about her purse and the friend says thank you. D. An employee shares information about a project's progress with a coworker who is uncertain.

What benefits can negotiators get from using the strategy of multiple equivalent simultaneous offers (MESOs)? Give a real life example.

What benefits can negotiators get from using the strategy of multiple equivalent simultaneous offers (MESOs)?

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.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

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.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

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.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

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

Ch. 12 - Which of the following is NOT an assumption of the...Ch. 12 - Prob. 2CQ Ch. 12 - Prob. 3CQ Ch. 12 - If the order quantity doubles but the flow rate...Ch. 12 - Prob. 5CQ Ch. 12 - Prob. 6CQ Ch. 12 - Prob. 7CQ Ch. 12 - Prob. 8CQ Ch. 12 - Prob. 9CQ Ch. 12 - Prob. 1PA

Concept explainers

Videos

Explanation of Solution

Want to see more full solutions like this?

Chapter 12 Solutions

Additional Business Textbook Solutions