Question: In the classic Economic Order Quantity (EOQ) associated with inventory under the assumptions of constant demand and fixed costs, what happens if the annual demand

In the classic Economic Order Quantity (EOQ) associated with inventory under the assumptions of constant demand and fixed costs, what happens if the annual demand increases from 1000 units to 2000 units?

A. The EOQ increases and the reorder point increases.

B. The EOQ decreases and the reorder point decreases.

C. The EOQ increases and the reorder point remains the same.

D. The EOQ decreases and the reorder point increases.

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