Assumption of the economic order quantity model

Assignment Help Business Economics
Reference no: EM131107451

Which one of the following is NOT an assumption of the Economic Order Quantity (EOQ) model?

a. Quantity discounts can be taken advantage of for large lot sizes.

b. The amount of an order received is exactly equal to what was ordered, without any short shipments from a supplier or scrap losses in the shop.

c. There is no uncertainty in lead-time.

d. Decisions for one item can be made independently of decisions made for other items.

Reference no: EM131107451

Questions Cloud

Present discounted value of the net revenue flow : Assume r = 0.1 is the present real interest rate and this rate is expected to prevail for the next 2 years. The monetary return (i.e. marginal revenue product) on machine A is expected to be R1 = $100,000 for year 1 and R2 = $50,000 for year 2. The p..
What is the annual effective interest rate earned on bond : A bond was purchased for $1000. Quarterly interest payments of 3.50 have been received. After 18 months the bond was sold for $1243.51. What is the annual effective interest rate earned on this bond?
Common law has always allowed all adults executing : The common law has always allowed all adults executing a will to partially or completely disinherit all, some or none of their children, adult or minor, as they see fit. No reason must be given and absolute discretion falls to each individual parent ..
Frequently gets mixed up when explaining macroeconomics : Sandra is an inexperienced teaching assistant who frequently gets mixed up when explaining macroeconomics. When trying to deliver the following statement, Sandra draws a blank.
Assumption of the economic order quantity model : Which one of the following is NOT an assumption of the Economic Order Quantity (EOQ) model?
What is personal property : Is the china dishes a personal property? What is a personal property? Do Marlene waver her ownership rights by abandoned the dishes at a dump site? Does Joe have new owner rights to the china dishes when it was found at the dump site?
Risk-free rate and inflation rate-what is expected return : If the market premium is 11.56 percent, the risk-free rate is 4.06 percent, the inflation rate is 1.46 percent, and Middlefield Motors common stock has a beta of 0.52, then what is the expected return for Middlefield Motors stock? Answer as a rate in..
Costs for purely competitive seller in the short run : Which of the following is not a valid generalization concerning the relationship between price and costs for a purely competitive seller in the short run?
Difference between intra-industry and inter-industry trade : What is the difference between intra-industry and inter-industry trade? Generally, trade in primary goods involves intra- or inter-industry trade?

Reviews

Write a Review

Business Economics Questions & Answers

  Two different market expansion strategies

In the United States, about two-thirds of Starbucks outlets are company owned; the remaining one-third are operated by licensees. Outside the United States, the proportions are reversed: about two-thirds are run by licensees or partnerships in which ..

  The economy is in the long-run equilibrium

What does it mean to say? Explain and illustrate graphically each. (Chapter 12; Long-run macro-equilibrium, recessions, expansions) a. The economy is in a recession? b. The economy is in an economic expansion with inflation? c. The economy is in the ..

  Explain how you imagine the invention of cheap electric

Explain how you imagine the invention of cheap electric cars would affect the demand for gasoline? Why? Which determinant of demand or supply would be affected?

  Corporate governance issue important in recent dismissal

The corporate governance issue most important in the recent dismissal of american apparel's founder as CEO involved,

  Consumer has utility function

A consumer has utility function given by u(x_1, x_2) = Squarerootx_1x_2. Suppose the price of good 1 falls from $5 to $2. while the price of good 2 and the consumer's income remain constant at $10 and $100, respectively. Find the substitution, income..

  Explain as they inconsistent with each other

In a market economy, every resource will tend to be paid according to its marginal product. Highly productive resources will command high prices, whereas less productive resources will command lower prices.

  Which economics test hypotheses against facts to develop

The process by which economics test hypotheses against facts to develop theories, principles also models

  Output level marginal revenue

A company is producing 15,000 units. At this output level, marginal revenue is $22, and the marginal cost is $18. The firm sells each unit for $48 and average total cost is $40. What can we conclude from this information?

  Discussing the use of path integrals in economics

As an active participant on the Physics Stack Exchange I have, on several separate occasions, run into some vague remarks about the 'intimate relation' between the famous Black-Scholes model in economics and the Schrodinger equation that appears in q..

  Labor costs have been increasing at an annual rate

Labor costs have been increasing at an annual rate of 10%. A firm wishes to set aside funds to cover labor costs for the next 5 years. Determine how much must be set aside today if the money will be invested and will earn interest at a rate of 10%. T..

  Increase the supply of money in a fiat money economy

Which of the following would NOT increase the supply of money in a fiat money economy?

  Independent of the probability that the high temperature

In May in Huntsville, the high temperature exceeded 80°F on 20 days. It rained on 8 days when the high temperature was over 80°F. If we choose any day in May, the probability that it rained on that day is independent of the probability that the high ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd