Aeroboats Frame Corporation increased the size of several inventory order quantities that had previously been determined using the EOQ model. What is the impact on the total annual ordering costs?
A)increase
B)decrease
C)no change
D)cannot be determined

Question

Quizplus · Accepted Answer

Increasing the order quantity reduces the number of orders placed annually, which decreases the total annual ordering costs.

Aeroboats Frame Corporation Increased the Size of Several Inventory Order