Question: (a) Do you agree with the following statement: According to the EOQ model, when the setup cost increases, the optimal order cycle has to increase.

(a) Do you agree with the following statement: According to the EOQ model, when the setup cost increases, the optimal order cycle has to increase. Explain. (Hint: The optimal batches per year are given by D/EOQ and so the optimal order cycle, defined as the time from the two adjacent orderings, is equal to EOQ/D.)

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