The basic EOQ model applies only when demand is
Afalling steadily
Bconstant over a period
Chighly seasonal
Drandom each week
Answer & Solution
Correct answer: B. constant over a period
The model assumes steady demand over the year, with each order delivered in full when stock reaches zero.
Keep practising Working Capital
Browse all Working Capital questions for CA Inter, or explore more Financial Management topics.
Related questions
Single stage inventory calculations look at which scope?Setting a number of days of supply as a coverage target is an example ofWhy should companies keep inventory low when working capital is scarce?Multi-echelon inventory optimization sets stock levelsWhich inventory optimization models use probability distributions for variables?The bullwhip effect in supply chains refers to what?Critics fault the EOQ model mainly for which weakness?Under an all-units discount, price is Rs 50 up to 1,000 units and Rs 45 for 1,001 to 5,000