Question: A retailer uses the EOQ model while deciding how much inventory of a product to order to satisfy constant demand rate during a long season.

A retailer uses the EOQ model while deciding how much inventory of a product to order to satisfy constant demand rate during a long season. Keeping everything else the same, if the demand of the product increases by 9 times, which of the following statement is true?

A.None of these.

B.The optimal order quantity will increase by 3 times.

C.The optimal order quantity will increase by 9 times.

D.The optimal order quantity will stay the same.

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