Question: In the economic order quantity model, a commitment to an order quantity larger than the optimal order quantity will make the total annual cost _____.
In the economic order quantity model, a commitment to an order quantity larger than the optimal order quantity will make the total annual cost _____.
A. higher because the increase in ordering cost dominates the decrease in holding cost
B. lower because the decrease in holding cost dominates the increase in ordering cost
C. higher because the increase in holding cost dominates the decrease in ordering cost
D. lower because the decrease in ordering cost dominates the increase in holding cost
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