Question: Using the EOQ model, the total inventory cost for a given lot size is calculated. You notice that the resulting annual holding cost is 10%

Using the EOQ model, the total inventory cost for a given lot size is calculated. You notice that the resulting annual holding cost is 10% higher than annual ordering cost. You can conclude that, compared to the optimal lot size (EOQ), this lot size is:

Select one:

a. Greater than EOQ

b. Less than EOQ

c. Exactly equal to EOQ

d. None of the above. Cant make a conclusion, not enough information.

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