Which of the following is not an assumption of EOQ Model ?

CS Executive · Financial and Strategic Management · PYQS · June 2022
Which of the following is not an assumption of EOQ Model ?
(A) Total usage of the commodity for the given period is known with certainty and the usage is spreaded evenly throughout the period
(B) There is sufficient gap between placing the order and receiving the supply
(C) The cost per order of commodity is constant irrespective of the number of total orders
(D) Carrying cost of the inventory is given as a percentage of the value of inventory and is fixed

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Management

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