Which One of the Following Statements Regarding the Economic Order

question 22

Multiple Choice

Which one of the following statements regarding the economic order quantity is true?

• A)The EOQ model combines several different item orders to the same supplier.
• B)If an order quantity is larger than the EOQ,the annual holding cost exceeds the annual ordering cost.
• C)The EOQ model assumes a variable demand pattern.
• D)When the interest rate drops,both the holding cost and the EOQ decreases.
• E)EOQ is used to determine the optimum shipping quantity.

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Definitions:

Infants

Children in the earliest stage of their lives, typically considered to be from birth to 2 years old.

Adults

Individuals who are considered legally mature and are responsible for their actions, with the age of adulthood varying by jurisdiction.

Contract

A pact between two or more parties that is recognized and enforceable by law.

Immoral

Behavior or actions that are considered to be in violation of ethical principles or social values.