Lower ordering costs would tend to increase a firm's economic order quantity.
By reducing the numerator in the basic EOQ formula, quantity (the quotient) is reduced.

Name: Lower ordering costs would tend to increase a firm's economic order quantity. By reducing the numerator in the basic EOQ formula, quantity (the quotient) is reduced.
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Question

Quizplus · Accepted Answer

Lower ordering costs would decrease the economic order quantity (EOQ) because the EOQ formula is inversely related to the square root of ordering costs.

Lower Ordering Costs Would Tend to Increase a Firm's Economic