In the economic order quantity model, if carrying costs increase while all other costs remain unchanged, the number of orders placed would be expected to increase.

Name: In the economic order quantity model, if carrying costs increase while all other costs remain unchanged, the number of orders placed would be expected to increase.
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Question

Quizplus · Accepted Answer

If carrying costs increase, the economic order quantity decreases, leading to smaller order sizes and thus more frequent orders to minimize total costs.

In the Economic Order Quantity Model, If Carrying Costs Increase