Question 2 A company using an EOQ policy enjoys rising annual demand for their p

Question

Question 2

A company using an EOQ policy enjoys rising annual demand for their products for three consecutive years. Their holding cost and ordering cost remain constant during this time. Which one of the following statements is TRUE?

Select one:

a. Their order quantity will rise but the time between orders will fall.

b. Their order quantity will fall and so will the time between orders.

c. Their order quantity will fall but the time between orders will rise.

d. Their order quantity will rise and so will the time between orders.

Explanation / Answer

The statement which is TRUE is : Their ordering quantity will fall but the time between orders will rise.

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