Which One of the Following Statements Concerning the Economic Order

question 7

Multiple Choice

Which one of the following statements concerning the economic order quantity (EOQ) model is not true when the unit holding cost increases?

• A)the economic order quantity will decrease
• B)the number of orders per year will decrease
• C)total ordering cost will increase
• D)average inventory will decrease

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Definitions:

Product Innovations

The introduction of a good or service that is new or significantly improved with respect to its characteristics or intended uses.

Process Innovations

Refers to the implementation of a new or significantly improved production or delivery method, contributing to increased efficiency and effectiveness.

Managerial Innovations

The implementation of new administrative processes, strategies, or products designed to improve the efficiency and productivity of management.

Extrinsic Rewards

Benefits given by employers to motivate employees that are external to the job itself, such as pay raises, bonuses, and perks.