Which of the Following Statements About the Basic EOQ Model

question 124

Multiple Choice

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

• A) If the ordering cost were to double, the EOQ would rise.
• B) If annual demand were to double, the EOQ would increase.
• C) If the carrying cost were to increase, the EOQ would fall.
• D) If annual demand were to double, the number of orders per year would increase.
• E) All of the above statements are true.

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Definitions:

Causal Attribution Theory

Theory of attribution that identifies the cause of a person’s actions as circumstance, a stimulus, or the person himself or herself.

Circumstance

A condition or fact that affects a situation, event, or action.

Stimulus

Anything that causes a response or change in an organism or any part of an organism.

Stimuli

Refers to anything that evokes a response in an organism or in any of its parts.