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) cannot be determined

Question

Quizplus · Accepted Answer

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

Air Frame Corporation Increased the Size of Several Inventory Order