Question: Does the EOQ also double? A . Yes , the EOQ doubles because the EOQ is directly proportional to the demand. B . No ,

Does the EOQ also double?
A.
Yes, the EOQ doubles because the EOQ is directly proportional to the demand.
B.
No, the EOQ does not double as the annual demand doubles. The EOQ is inversely proportional to the square-root of the demand.
C.
No, the EOQ does not double as the annual demand doubles. The EOQ increases by the square-root of the product of two-times the demand times ordering cost, divided by holding cost.
D.
No, the EOQ does not double as the annual demand doubles. The EOQ is inversely proportional to the demand.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!