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

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.

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.