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What are the assumptions in the basic model of economic order quantity of inventory?
Premise assumption:

1. Material demand balance, knowing the demand in a certain period;

2. Material replenishment is completed instantly;

3. The unit price of materials remains unchanged, that is, there is no price discount;

4. Order lead time is determined, that is, there will be no shortage, that is, insurance inventory is not considered, and the shortage cost is zero;

5. The storage cost of materials is directly proportional to the average storage capacity of materials;

6. The ordering cost of materials does not change with the ordering quantity, that is, the cost of each order is a known constant;