Reference no: EM131133934
1) Which of the following is not an assumption associated with the basic economic order quantity (EOQ) model?
a. no inventory in transit
b. an infinite planning horizon
c. stockouts are permitted
d. a constant and known replenishment or lead time
e. all are basic assumptions with the basic EOQ model
2) All of the following statements are true, except:
a. the importance of individual carrying costs factors (categories) is generally consistent from product to product
b. inventory carrying costs consist of a number of different components or factors
c. in general, companies prefer to carry less inventory as carrying costs increase
d. in general, inventory carrying costs are expressed in percentage terms
e. all of the above are true
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