If Annual Demand Increases by 100%, the Average Inventory Held

question 75

Multiple Choice

If annual demand increases by 100%, the average inventory held in a system governed by the EOQ model is:

• A)increased 100%.
• B)decreased by 100%.
• C)decreased by 50%.
• D)increased by 40%.

---

Definitions:

Articles of Partnership

Articles of Partnership is a document that outlines the terms, conditions, and responsibilities of each partner in a partnership.

Annual Salary

The total amount of money an employee earns in a year before deductions for taxes and other items.

Capital Balance

The amount of money that an individual or entity has contributed towards the capital of a company, often reflected in the equity section of a balance sheet.