New Markets' economic ordering quantity (EOQ) is 30,000 widgets. New Markets' EOQ will decrease if the ______ increases.

Question

Quizplus · Accepted Answer

The Economic Order Quantity (EOQ) model is designed to minimize the total inventory costs, which include order costs and holding (or carrying) costs. An increase in the cost of carrying each widget (option D) would increase the holding costs, leading to a decrease in the EOQ to minimize these costs.

New Markets' Economic Ordering Quantity (EOQ) Is 30,000 Widgets