According to the assumptions upon which the EOQ model is based,total inventory costs _______________ with increases in the number of units ordered in each order.

Question

Quizplus · Accepted Answer

The EOQ model assumes that total inventory costs first decrease as the number of units ordered increases (due to economies of scale and reduced ordering costs), but beyond a certain point, costs begin to increase due to higher holding costs.

According to the Assumptions Upon Which the EOQ Model Is