APICS Exam CSCP Topic 1 Question 71 Discussion

Actual exam question for APICS's CSCP exam

Question #: 71
Topic #: 1

[All CSCP Questions]

A key assumption of the economic order quantity (EOQ) is that:

Afuture demand cannot be projected.

Bthe rate of demand is continuous and constant.

Creorder frequency is fixed.

Das the lot size decreases, the setup cost per unit decreases.

Show Suggested Answer

Suggested Answer: A

by Lisha at Jul 04, 2023, 08:02 PM

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Darrin

12 days 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.

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Gayla

15 days 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.

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Crista

16 days 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.

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Tesha

17 days 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!

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Sabra

14 hours ago

User 1: I think the answer is B) the rate of demand is continuous and constant.

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2 months ago

I think the answer is B.

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