Certified Management Accountant 2026 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 430

When is the demand considered uniform in the context of EOQ?

When it varies significantly over time

When it is predictable and stable over a period

Demand is considered uniform in the context of Economic Order Quantity (EOQ) when it is predictable and stable over a period. This uniformity allows for consistent ordering and inventory management since businesses can anticipate their needs without sudden fluctuations impacting their supply chain decisions.

When demand is uniform, companies can make data-driven decisions regarding how much inventory to order and when to reorder, leading to optimal stock levels and minimization of holding and ordering costs. This predictability helps avoid excess inventory or stockouts, enhancing operational efficiency.

In contrast, variations in demand, whether significant fluctuations, seasonal patterns, or influences from external market trends, can complicate inventory management and disrupt the assumptions underlying the EOQ model. Uniform demand provides the reliability necessary for effectively applying EOQ principles.

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When it fluctuates seasonally

When it is influenced by market trends

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