Air Frame Corporation increased the size of several inventory order quantities that had previously been determined using the EOQ model.What is the impact on the total annual ordering costs?
A)increase
B)no change
C)decrease
D)substantial increase

Question

Quizplus · Accepted Answer

Increasing the order quantity reduces the number of orders needed per year, which decreases the total annual ordering costs.

Air Frame Corporation Increased the Size of Several Inventory Order