A new upgrade for a product is expected to increase demand by a factor of 4.If all other factors remain equal, how is EOQ likely to change?
A)EOQ will double.
B)EOQ will increase by 50 percent.
C)EOQ will decrease by 50 percent.
D)EOQ will not change.

Question

Quizplus · Accepted Answer

EOQ (Economic Order Quantity) is directly proportional to demand. As the demand is expected to increase by a factor of 4, EOQ will also increase by a factor of 4 or double. Therefore, the best choice is A.

A New Upgrade for a Product Is Expected to Increase