Jones Company Has Calculated That the EOQ for a Particular

question 6

Multiple Choice

Jones Company has calculated that the EOQ for a particular item is 1,000 units.However,Jones does not have enough capital to order that many units each time,so it only orders 250 units at a time.This will result in:

• A)Higher annual inventory carrying cost than ordering the EOQ quantity
• B)Lower annual inventory carrying cost than ordering the EOQ quantity
• C)Lower annual ordering cost than ordering the EOQ quantity
• D)Cannot be determined

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