A company operating under an EOQ policy enjoys rising annual demand for their products for three consecutive years.During this time their holding cost and ordering cost remain constant.Which statement is BEST?
A)Their order quantity will fall and so will the time between orders.
B)Their order quantity will fall but the time between orders will rise.
C)Their order quantity will rise but the time between orders will fall.
D)Their order quantity will rise and so will the time between orders.

Question

Quizplus · Accepted Answer

As demand increases, the EOQ formula indicates that the order quantity will rise. However, with higher demand, the time between orders will decrease because more frequent orders are needed to meet the increased demand.

A Company Operating Under an EOQ Policy Enjoys Rising Annual