In the classical economic order quantity (EOQ) model, let Q and C deno – McqOptions

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1.	In the classical economic order quantity (EOQ) model, let Q and C denote the optimal order quantity and the corresponding minimum total annual cost (the sum of the inventory holding and ordering costs). If the order quantity is estimated incorrectly as Q′ = 2Q, then the corresponding total annual cost C′ is
A.	C′ = 1.25C
B.	C′ = 1.5C
C.	C′ = 1.75C
D.	C′ = 2C
Answer» B. C′ = 1.5C

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