When using the EOQ Formula with noninstantaneous production, as the demand rate (D) increases up to the rate of production, the EOQ
A) increases.
B) decreases.
C) remains the same.
D) cannot be determined.

Question

Quizplus · Accepted Answer

When demand rate increases up to the rate of production, the setup cost per unit decreases and holding cost per unit increases, leading to an increase in EOQ.

When Using the EOQ Formula with Noninstantaneous Production, as the Demand