Concerning the EOQ model,if the ordering costs increase by 10% and the product value 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

The EOQ formula is √((2DS)/H), where D is demand, S is ordering cost, and H is holding cost. If both ordering cost (S) and product value (which affects holding cost, H) increase by the same percentage, their effects on EOQ cancel each other out, keeping EOQ unchanged.

Concerning the EOQ Model,if the Ordering Costs Increase by 10