Inflation affects the EOQ model in all of the following ways EXCEPT
A) changing the investment in accounts receivable.
B) encourages anticipatory buying.
C) increased carrying costs.
D) encourages buying early to avoid price increases.

Question

Quizplus · Accepted Answer

Inflation does not directly affect the investment in accounts receivable. However, inflation can affect the costs of materials and production, which can impact the total cost of goods sold and therefore impact the EOQ model. The other options are true and are ways in which inflation affects the EOQ model.

Inflation Affects the EOQ Model in All of the Following