The Lemma Company manufactures and sells 10 products. Ways have been found to cut both the setup and inventory holding costs in half. What effect will this have on the economic order quantities of the 10 products?
A) They will be increased by a factor of 1.41.
B) They will not change.
C) They will be reduced by a factor of 2.00.
D) They will be reduced by a factor of 1.41.

Question

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The Answer of The Lemma Company manufactures and sells 10 products. Ways have been found to cut both the setup and inventory holding costs in half. What effect will this have on the economic order quantities of the 10 products?
A) They will be increased by a factor of 1.41.
B) They will not change.
C) They will be reduced by a factor of 2.00.
D) They will be reduced by a factor of 1.41.

The Lemma Company Manufactures and Sells 10 Products