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A key assumption of the economic order quantity (EOQ) is that:
Suggested Answer: A
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35 comments · newest first
TH
Thad
11 months ago
I thought future demand could be projected in some cases?
VI
Vilma
11 months ago
Reorder frequency being fixed is also important, but not the main assumption here.
WI
Wilford
11 months ago
Wait, are we sure about that? Seems too simplistic.
ST
Staci
11 months ago
Totally agree, B is the right choice!
VI
Viva
12 months ago
The rate of demand is continuous and constant. That's key!
EL
Eleonore
12 months ago
I feel like I might be mixing up the assumptions. Wasn't there something about setup costs decreasing with lot size? That sounds familiar.
LE
Leonora
12 months ago
I’m pretty certain that the rate of demand being constant is crucial for EOQ. It seems to come up a lot in practice problems.
LE
Lewis
1 year ago
I remember practicing a question where the fixed reorder frequency was mentioned, but I can't recall if that's a key assumption of EOQ.
CU
Curtis
1 year ago
I think the EOQ assumes that demand is constant, but I'm not entirely sure if it's continuous too.
LA
Lacey
1 year ago
Hmm, this question is about MPLS and FEC, which I've covered in my studies. I think the key is understanding what FEC is and how it's used for forwarding decisions.
AS
Asuncion
1 year ago
Hmm, I'm a bit unsure about this one. I know we need to set up internet connectivity, but I'm not sure if we need a NAT gateway, an internet gateway, or both. I'll have to think this through carefully.
MY
Myong
1 year ago
I'm pretty confident that the answer is A. Local storage at the camera is the best way to reduce the impact on recorded video during server maintenance.
MY
Myrtie
1 year ago
This one seems pretty straightforward - I'm pretty sure administrative agency rules are published in the Federal Register, so I'll go with option B.
DA
Darrin
1 year ago
D) Decreasing setup costs? What is this, some kind of magic trick? The EOQ is all about balancing holding and ordering costs, not defying the laws of economics.
GA
Gayla
1 year ago
If the demand rate isn't constant, how are you supposed to calculate the optimal order quantity? B is clearly the right answer, duh.
CR
Crista
1 year ago
A) future demand cannot be projected? Really? That's like the opposite of what the EOQ is all about. B is the way to go, no doubt.
TE
Tesha
1 year ago
Hmm, I was leaning towards D, but I can see how that wouldn't be a core assumption of the model. Gotta love those tricky supply chain questions!
TI
Tina
1 year ago
Gayla: Definitely, it simplifies the calculations and helps in optimizing inventory levels.
CE
Celestine
1 year ago
User 3: Yeah, it makes sense to assume a constant demand for the model to work effectively.
GA
Gayla
1 year ago
User 2: I agree, that's a key assumption for EOQ calculations.
SA
Sabra
1 year ago
User 1: I think the answer is B) the rate of demand is continuous and constant.
DO
Doretha
1 year ago
I was torn between B and C, but I think B makes the most sense. The EOQ model requires a stable, predictable demand pattern.
CH
Chandra
1 year ago
User 3: I think we can all conclude that option B is the correct assumption for EOQ.
TI
Tiera
1 year ago
User 2: Yeah, the EOQ model definitely relies on a constant rate of demand.
BA
Barabara
1 year ago
User 1: I agree, option B seems to be the most logical choice.
MO
Mollie
1 year ago
The correct answer is B) the rate of demand is continuous and constant. This is a key assumption of the EOQ model.
RO
Ronald
1 year ago
So, we need to consider the constant rate of demand when calculating EOQ.
KA
Katlyn
1 year ago
Yes, that's correct. It helps in determining the optimal order quantity.
AR
Aretha
1 year ago
I think the key assumption of EOQ is that the rate of demand is continuous and constant.
HO
Hoa
1 year ago
I'm not sure, but I think it's C.
TA
Tarra
1 year ago
I agree with Phyliss, the assumption is that the rate of demand is continuous and constant.
PH
Phyliss
1 year ago
I think the answer is B.
AL
Aliza
1 year ago
I'm not sure, but I think it's C.
AL
Alease
2 years ago
I agree with Denae, the assumption is that the rate of demand is continuous and constant.
DE
Denae
2 years ago
I think the answer is B.