Multiple Choice
Which one of the following statements regarding the economic order quantity (EOQ) is TRUE?
A) When the interest rate drops, the inventory holding cost decreases and the EOQ decreases.
B) If an order quantity is larger than the EOQ, the annual holding cost for cycle inventory exceeds the annual ordering cost.
C) The EOQ model combines several different item orders to the same supplier.
D) The EOQ model assumes a variable demand pattern.
Correct Answer:
Verified
Correct Answer:
Verified
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