Which One of the Following Statements Concerning the Economic Order

question 169

Multiple Choice

Which one of the following statements concerning the economic order quantity (EOQ) is True?

• A) The EOQ is the order quantity that minimizes annual inventory holding costs.
• B) An increase in demand will increase the EOQ.
• C) The time between orders (TBO) will increase with an increase in holding costs.
• D) The EOQ formula assumes that there are only three relevant costs: holding, transportation, and setup.

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