Q31

Which of the following regarding the economic order quantity (EOQ) is WRONG?

At EOQthe long-run average fixed ordering cost and long-run average holding cost are balanced. EOQ reaches the lowest value of C(Q) .

O EOQ increases when the unit holding cost h gets lower.

None of the above.

Suppose inventory is managed using the order-up-to policy. Which of the following situation(s) will NOT have an impact on the safety stock amount? A. Critical ratio gets higher B. Mean demand gets higher

C. Standard Deviation of demand o get higher

Only A

Only B

Only c

A and B

A and c