Concerning the EOQ model, if demand or annual usage increases by 10%, then the EOQ will ____.
A) it depends on the particular product
B) increase
C) decrease
D) stay unchanged

Question

Quizplus · Accepted Answer

The EOQ (Economic Order Quantity) formula is proportional to the square root of demand. Therefore, if demand increases by 10%, the EOQ will increase, but by less than 10%.

Concerning the EOQ Model, If Demand or Annual Usage Increases