The Economic Order Quantity decreases with carrying costs,and increases with demand and ordering costs.
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The Economic Order Quantity (EOQ) model determines the optimal quantity of inventory that a company should order to minimize total inventory costs. The formula for EOQ includes carrying costs, demand, and ordering costs. As carrying costs increase, the EOQ decreases because there is a greater cost associated with holding excess inventory. On the other hand, as demand or ordering costs increase, the EOQ will increase because more inventory needs to be ordered to meet demand or to offset the cost of ordering. Therefore, the statement is true.

The Economic Order Quantity Decreases with Carrying Costs,and Increases with Demand