If the costs (S and H) and demands (D) are the same, which of the following is not true with regard to the EPQ model as compared to the EOQ model?a.The two models use different formulas to compute annual ordering cost.b.The inventory depletion rate is the same for both models.c.The maximum inventory level is lower under the EPQ model than under the EOQ modeld.The EPQ model produces a lower total annual cost.

The statement that is not true with regard to the EPQ (Economic Production Quantity) model as compared to the EOQ (Economic Order Quantity) model, when the costs (S and H) and demands (D) are the same, is:

c. The maximum inventory level is lower under the EPQ model than under the EOQ model.

Explanation:

a. The two models use different formulas to compute annual ordering cost - This is true. The EOQ model uses the formula SD/Q, while the EPQ model uses the formula SD/P.

b. The inventory depletion rate is the same for both models - This is true. Both models assume that demand is constant over time, so the rate at which inventory is depleted is the same.

c. The maximum inventory level is lower under the EPQ model than under the EOQ model - This is false. The EPQ model allows for production and usage to occur simultaneously, which can result in a higher maximum inventory level than the EOQ model, which assumes that all units are received at once.

d. The EPQ model produces a lower total annual cost - This is true. The EPQ model takes into account the production rate, which can lead to a lower total annual cost if the production rate is higher than the demand rate.