Which of the Following Statements About the Basic EOQ Model

question 174

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 by 73%.
• C) If the holding cost were to increase, the EOQ would decrease.
• D) If annual demand were to double, the EOQ would rise.
• E) None. All of these statements are true.

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