Concerning the EOQ model,if demand or annual usage increases by 10%,then the EOQ will:
A)increase
B)decrease
C)stay unchanged
D)it depends on the particular product

Question

Quizplus · Accepted Answer

EOQ (Economic Order Quantity) is calculated based on demand or annual usage, holding cost, and order cost. If demand or annual usage increases, the EOQ will also increase as the formula takes into account the increase in demand. Therefore, the correct answer is A) increase.

Concerning the EOQ Model,if Demand or Annual Usage Increases by 10%,then