In the EOQ model,if quantity discounts are offered,then ______.
A)the EOQ may not result in the lowest total annual cost
B)it does not make any difference,as the EOQ will always result in the lowest total annual cost
C)the EOQ model with the quantity discounts will always give a lower total annual cost than the EOQ model without quantity discounts
D)the quantity discounts should be taken

Question

Quizplus · Accepted Answer

If quantity discounts are offered, it may be more economical to order in larger quantities than the EOQ, resulting in a lower total annual cost. Therefore, the EOQ may not always result in the lowest total annual cost in the presence of quantity discounts.

In the EOQ Model,if Quantity Discounts Are Offered,then ______