Question: A firm has calculated an EOQ quantity for an item as being 2 1 0 7 units. A decision is made to order in lots
A firm has calculated an EOQ quantity for an item as being units. A decision is made to order in lots of only units. Which of the following would be true:
A Unit carrying cost will be greater than the cost per order.
B Service level will decrease.
C Annual ordering cost will be greater than annual carrying cost.
D Fewer orders will need to be placed each year.
E Annual carrying cost will be greater than the annual ordering cost.
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