Which of the following statements is NOT true of economic order quantity (EOQ)?
A) The economic order quantity (EOQ) mathematically determines the minimum total inventory cost.
B) The EOQ ignores inventory reorder costs and inventory carrying costs.
C) The optimal order size is determined by the EOQ model.
D) The EOQ is directly proportional to the sales per period.

Question

Quizplus · Accepted Answer

The EOQ model specifically considers both inventory reorder costs and inventory carrying costs to determine the optimal order quantity that minimizes total inventory costs.

Which of the Following Statements Is NOT True of Economic