Вопрос
QUESTION THREE a) To calculate the E.O.Q a mathematical model of reality must be constructed I all mathematical models make assumptions that simplify reality. What are the basic E.O.Q model assumption. [10 Marks]
Решения
4.3
(209 Голоса)
Радмила
мастер · Репетитор 5 лет
Ответ
The basic E.O.Q model assumptions are: 1. Demand is known with certainty and is constant over time.2. Lead time is constant and known with certainty.3. There is no backorder allowed.4. The ordering cost is constant for all orders.5. The holding cost is constant per unit per year.
Объяснение
The question is asking about the basic assumptions of the Economic Order Quantity (E.O.Q) model. The E.O.Q model is a mathematical model used in operations management and logistics to determine the optimal order quantity that minimizes total inventory costs. This model assumes the following:1. Demand is known with certainty and is constant over time.2. Lead time is constant and known with certainty.3. There is no backorder allowed.4. The ordering cost is constant for all orders.5. The holding cost is constant per unit per year.These assumptions simplify the real-world scenario to make the mathematical model feasible and solvable. However, it's important to note that these assumptions may not always hold true in real-world situations, but the E.O.Q model provides a good approximation under these assumptions.