Which of the following in an incorrect statement about the Naive EOQ process?
a. it takes into account order and set up costs
b. its the order quantity at the point where the slope of the total inventory cost curve is zero.
c. it attempts to minimize the cost activity in a firm's inventory management process
d. it balances order costs against inventory carrying costs to determine optimum order quantity
e. it accounts for lead time variance and demand variance
Answer: E