What assumptions are made in calculating the economic order quantity? Which of these assumptions is the least realistic? Why?
What will be an ideal response?
The assumptions are constant demand known with certainty, no constraints on the size of each lot, only two relevant costs, decisions made independently, and no uncertainty in lead-time and supply. Answers will vary as to the least realistic assumption.
You might also like to view...
Philip Morris bought Miller brewing and launched low-calorie beer, at a time when consumers had the impression that low-calorie beer does not taste as good as normal beer
What did the company try to build when they conveyed the fact that the beer contained one third less calories and hence it is less filling? A) points-of-difference B) points-of-conflict C) points-of-parity D) points-of-presence E) points-of-inflection
There are both fee-based and commission-based financial planners
Indicate whether the statement is true or false.