1.

Which of the following statements concerning the basic EOQ model is true?

A. A decrease in demand will increase the EOQ value
B. If an actual order quantity is smaller than-the EOQ, the annual holding cost is less than the annual ordering cost.
C. An increase in holding cost will increase the EOQ value.
D. In the EOQ formula there is an inverse relationship between setup and carrying costs.
Answer» C. An increase in holding cost will increase the EOQ value.


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