Which of the Following Statements About the Basic EOQ Model

question 134

Multiple Choice

Which of the following statements about the basic EOQ model is false?

• A) If the setup cost were to decrease, the EOQ would fall.
• B) If annual demand were to double, the number of orders per year would increase.
• C) If the ordering cost were to increase, the EOQ would rise.
• D) If annual demand were to double, the EOQ would also double.
• E) If the carrying cost were to increase, the EOQ would fall.

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Definitions:

Mesa

A broad, flat-topped and steep-sided, isolated hill or mountain.

Fracture

A break or crack in a rock; subdivided into joints and faults.

Rock Layers

Strata or sequences of rock sediment that have accumulated over time, each layer representing a specific era in geologic history.

Youngest Unit

The most recently formed or deposited geological layer or structure in a sequence.