Question: By applying the EOQ model, we have EOQ = 1 0 8 3 and the corresponding annual ordering cost is 3 1 . 1 5

By applying the EOQ model, we have EOQ =1083 and the corresponding annual ordering cost is
31.15. Based on this information, which of the following statements is INCORRECT?
A. If we order 1083(EOQ) each time, the annual holding cost is 31.15
B. If we order 800(less than EOQ) each time, the annual holding cost must be below 31.15.
C. If we order 1300(more than EOQ) each time, the annual ordering cost must be above 31.15.
D. If we order 1300(more than EOQ) each time, the total annual cost (ordering + holding) must be above 62.3.
E. All of the above statements are correct.

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