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Which of the following is true of the EOQ model? Note that the optimal order quantity, Q*, will be called EOQ. a. If the annual
Which of the following is true of the EOQ model? Note that the optimal order quantity, Q*, will be called EOQ.
a. If the annual sales, in units, increases by 20%, then EOQ will increase by 20%. b. If the average inventory increases by 20%, the total order costs will increase by 20%. c. If the average inventory increases by 20%, the total carrying costs will increase by 20%. d. The EOC is the same for all companies. e. If the fixed per order cost increases by 20%, then EOQ will increase by 20%.
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