Which of the following statements about the basic EOQ model is true? If the orde
ID: 377698 • Letter: W
Question
Which of the following statements about the basic EOQ model is true?
If the ordering cost were to increase, the EOQ would decrease.
If annual demand were to double, the EOQ would be half.
If the holding cost were to decrease, the EOQ would decrease.
If ordering cost were to decrease, the EOQ would decrease.
All of the above statements are true.
If the ordering cost were to increase, the EOQ would decrease.
If annual demand were to double, the EOQ would be half.
If the holding cost were to decrease, the EOQ would decrease.
If ordering cost were to decrease, the EOQ would decrease.
All of the above statements are true.
Explanation / Answer
Option D :
If ordering cost were to decrease, the EOQ would decrease.
EOQ= square root of {[2DS/h (1-d/p)]}
If ordering cost were to decrease, the EOQ would decrease.
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