Which of the Following Is True of the EOQ Model

question 61

Multiple Choice

Which of the following is true of the EOQ model? Note that the optimal order quantity,Q,will be called EOQ.

• A)If the fixed per order cost increases by 20%, then EOQ will increase by 20%.
• B)If the annual sales, in units, increases by 20%, then EOQ will increase by 20%.
• C)If the average inventory increases by 20%, then the total carrying costs will increase by 20%.
• D)If the average inventory increases by 20% the total order costs will increase by 20%.

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Definitions:

Distort

To twist information or facts, thus altering their original and intended meaning or perception.

Cover Up

An attempt to prevent the discovery of wrongdoing, errors, or a scandal.

Incremental Approaches

A method of problem-solving or project management that involves making small, manageable changes or improvements over time, rather than implementing a large change all at once.

Indirect Form

A manner of communication or influence that is not direct or straightforward, often implying or suggesting rather than explicitly stating.