In an EOQ model, as the carrying cost increases, the order quantity
A) increases.
B) decreases.
C) remains the same.
D) cannot be determined.

Name: In an EOQ model, as the carrying cost increases, the order quantity A) increases. B) decreases. C) remains the same. D) cannot be determined.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

As the carrying cost increases, it becomes more expensive to hold inventory. Therefore, the optimal order quantity decreases in order to minimize the holding costs.

In an EOQ Model, as the Carrying Cost Increases, the Order