Ask Question
BusinessBusiness
2 May, 07:58

The economic order quantity A. assumes that inventory usage is seasonal. B. assumes that delivery times of each order are consistent C. considers stock-outs D. all of the above

+1
Answers (2)
  1. 2 May, 08:01
    0
    Answer: B. assumes that delivery times of each order are consistent

    Explanation: The economic order quantity is a model that shows a company's most favorable or optimal order quantity that minimizes its total costs and it is best applied in situations where the costs of demand, ordering, and holding remain constant over time. These cost may include costs associated with ordering, receiving, and holding inventory. It also represents is the number of units that a company is required to add to its inventory with each order to minimize the total costs of inventory. Some of the assumptions made under the economic order quantity are: the rate of demand is constant; total demand is known in advance; ordering cost is constant; the unit price of inventory is constant; delivery time is constant; replacement of defective units is instantaneous; the minimum stock level is zero and restocking is made by the whole batch.
  2. 2 May, 08:25
    0
    B) Assumes that delivery times are consistent.

    Explanation:

    Economic order quantity: It is used to calculate the appropriate amount of quantity to be ordered, EOQ has some assumptions and delivery time's consistency is one of those.

    Delivery time consistency: The time required to deliver the product will take the same time as it took in previous order.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The economic order quantity A. assumes that inventory usage is seasonal. B. assumes that delivery times of each order are consistent C. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
What type of business often pays similar taxes as that of a sole proprietorship or a partnership depending on whether there are one or more members?
Answers (1)
Ron is an executive coach who wants to develop new training programs for customers and would like feedback from his staff and some of his key accounts. He is unsure if he should set up a Podcast or a wiki to gather information.
Answers (1)
Kartman Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 8.1 pounds $ 8.60 per pound $ 69.66 Direct labor 0.4 hours $ 40.00 per hour $ 16.
Answers (1)
Match the business strategies with their characteristics. a. Niche b. Imitation c. High-speed strategy x. Based on a belief that time is money y. Concentrates on a specific regional market or buyer group z.
Answers (1)
5. The study of all activities involved in the exchange of goods and services between business and consumers is (a) product research, (b) marketing research, (c) market research, (d) advertisinjg research.
Answers (1)
New Questions in Business
If an investor owns less than 20% of the common stock of another corporation as an investment. a. it is presumed that the investor has relatively little influence on the investee. b. no dividends can be expected. c.
Answers (1)
Schager Company purchased a computer system on January 1, 2010, at a cost of $25,000. The estimated useful life is 10 years, and the estimated salvage value is $3,000.
Answers (1)
Many people keep working long after retirement age because work:
Answers (1)
The 12-month period that ends when a company's sales activities are at their lowest level is called the:
Answers (2)
Niran has initiated a scam in which he counterfeited a well-known banking website and sent out e-mails to direct victims to it.
Answers (1)
Home » Business » The economic order quantity A. assumes that inventory usage is seasonal. B. assumes that delivery times of each order are consistent C. considers stock-outs D. all of the above
Sign Up Forgot Password?