Dry Creek 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)no change
B)increase
C)decrease
D)cannot be determined

Question

Quizplus · Accepted Answer

Decreasing the size of inventory order quantities while demand remains the same will increase the number of orders made during the year to meet the unchanged demand.

Dry Creek Company Decreased the Size of Inventory Order Quantities