Using the EOQ model, the higher an item's carrying costs, the more frequently it will be ordered.

Name: Using the EOQ model, the higher an item's carrying costs, the more frequently it will be ordered.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In the Economic Order Quantity (EOQ) model, higher carrying costs incentivize ordering in smaller quantities more frequently to minimize the total cost of inventory, which includes both carrying costs and ordering costs.

Using the EOQ Model, the Higher an Item's Carrying Costs