In the EOQ model, if carrying costs increase while all other costs remain unchanged, the number of orders placed would be expected to increase.

Question

Quizplus · Accepted Answer

An increase in carrying costs would lead to an increase in the inventory holding cost, leading to an increase in the optimal order quantity and a decrease in the number of orders placed. Therefore, the statement given is false.

In the EOQ Model, If Carrying Costs Increase While All