Question: A company determines its order quantity for a raw material by using the Economic Order Quantity (EOQ) model. What would be the effects on the

A company determines its order quantity for a raw material by using the Economic Order Quantity (EOQ) model. What would be the effects on the EOQ and the total annual holding cost of a decrease in the cost of ordering a batch of raw material?

EOQ Total annual holding cost

a) Higher Lower

b) Higher Higher

c) Lower Lower

d) Lower Higher

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