An increase in which variable will cause the economic ordering quantity to rise?
A)product demand (sales)
B)current level of inventory
C)purchase price
D)carrying cost

Question

Quizplus · Accepted Answer

Economic ordering quantity (EOQ) is calculated based on certain variables, including demand/sales, purchase price, and carrying cost. Therefore, an increase in product demand (sales) will increase the EOQ. An increase in the current level of inventory, purchase price, or carrying cost will have the opposite effect and decrease the EOQ.

An Increase in Which Variable Will Cause the Economic Ordering