Decreases in the ordering cost per purchase order and increases in the carrying result in:
Variant question
A)larger relevant total costs.
B)smaller relevant total costs.
C)smaller EOQ amounts.
D)larger EOQ amounts.

Question

Quizplus · Accepted Answer

Decreases in the ordering cost per purchase order and increases in the carrying cost both lead to smaller Economic Order Quantity (EOQ) amounts, as the EOQ formula is sensitive to these parameters. Lower ordering costs reduce the penalty for ordering more frequently, while higher carrying costs penalize holding inventory, both encouraging smaller order sizes.

Decreases in the Ordering Cost Per Purchase Order and Increases