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Which of these statements about the production order quantity model is false?

 Options:

A. The production order quantity model is appropriate when the assumptions of the basic EOQ model are met, except that receipt is no instantaneous. B. Because receipt is non-instantaneous, some units are used immediately and not stored in inventory. C. Average inventory is less than one-half of the production order quantity. D. All else equal, the smaller the ratio of demand rate to production rate, the larger is the production order quantity. E. None of the above is false.

 

The Correct Answer Is:

• D. All else equal, the smaller the ratio of demand rate to production rate, the larger is the production order quantity.

 

Conclusion

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