Concerning the EOQ model,if the ordering costs increase by 10 percent and the product value increases by 10 percent,then the EOQ will ___________.
A)stay unchanged
B)increase
C)decrease
D)It depends on the particular product.

Question

Quizplus · Accepted Answer

The Economic Order Quantity (EOQ) formula is primarily affected by the demand, ordering costs, and holding costs. A percentage increase in the product value affects the holding cost, but since both ordering costs and holding costs are increasing proportionally, the EOQ remains unchanged. The formula for EOQ does not directly factor in the product value but rather the costs associated with ordering and holding inventory.

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