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