Waterhouse Company decreased the size of inventory order quantities that had previously been determined using the EOQ model.If demand remains the same, what is the impact on the number of orders made during the year?
A) increase
B) no change
C) decrease
D) cannot be determined

Question

Quizplus · Accepted Answer

Decreasing the size of inventory order quantities while demand remains the same will result in an increase in the number of orders made during the year, as more frequent orders will be needed to meet the same demand.

Waterhouse Company Decreased the Size of Inventory Order Quantities That