Hannafin Company decreased the size of inventory order quantities below the quantity determined by EOQ. If annual quantity demanded remains the same, the number of orders made during the year will:

Question

Quizplus · Accepted Answer

If the size of inventory order quantities is decreased below the EOQ, then it means that more orders will be needed to fulfill the same level of annual demand. This will result in an increase in the number of orders made during the year.

Hannafin Company Decreased the Size of Inventory Order Quantities Below