In the EOQ model, if the size of order increases, the ________.
A) carrying cost will increase
B) order cost will remain unchanged
C) order cost will increase
D) storage cost will decrease

Question

Quizplus · Accepted Answer

In the Economic Order Quantity (EOQ) model, as the size of the order increases, the carrying cost, which includes the cost of holding or storing inventory, will increase. This is because larger quantities of inventory require more space and resources to maintain.

In the EOQ Model, If the Size of Order Increases