BUSI $2113|$ UNIT $9|$ INVENTORY MANAGEMENT

INVENTORY MODELS FOR INDEPENDENT DEMAND

Which of the following statements about the basic EOQ model is TRUE?

A

If the ordering cost were to double, the EOQ would rise

B If annual demand were to double, the EOQ would increase

C If the carrying cost were to increase, the EOQ would fall

ependent Demand

Safety Stock

D If annual demand were to double, the number of orders per year would increase

E All of these statements are true