What happens to the EOQ when the unit cost increases (assuming all other variables remain the same)?
A)EOQ increases
B)EOQ decreases
C)EOQ remains the same
D)None of the above (need more information)

Question

Quizplus · Accepted Answer

The EOQ formula takes into account the unit cost, so if the unit cost increases, the EOQ will decrease in order to minimize the total inventory cost.

What Happens to the EOQ When the Unit Cost Increases