For the EOQ Model, Which of the Following Relationships Is

question 56

Multiple Choice

For the EOQ model, which of the following relationships is incorrect?

• A) As the order quantity increases, the number of orders placed annually decreases.
• B) As the order quantity increases, annual holding cost increases.
• C) As the order quantity increases, annual ordering cost increases.
• D) As the order quantity increases, average inventory increases.

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Definitions:

Voltage Difference

The difference in electric potential between two points in an electrical circuit.

Dielectric

A non-conducting material that can be polarized by an external electric field, commonly used as an insulating material between conducting surfaces.

Metal Conductors

Materials that allow the flow of electrical current due to their free electron movement.

Insulating Material

Materials that hinder the flow of electric current, used to protect against electrical shocks and to contain electrical wiring.