Constant demand rate: The demand for the product is steady over time. Constant lead time: The time between placing an order and receiving it is fixed. Single product focus: The EOQ formula is designed for one product at a time. Constant holding and ordering costs: These costs do not change over time. No stockouts: The model assumes that stockouts do not occur.
While these assumptions may not hold true in all real-world scenarios, EOQ provides a good starting point for inventory management.