Question: Using the EOQ model with a constant demand rate, if the number of orders placed annually decreases, what will happen to the annual ordering cost?

Using the EOQ model with a constant demand rate, if the number of orders placed annually decreases, what will happen to the annual ordering cost?

annual ordering cost will increase

annual ordering cost will decrease

annual ordering cost will remain the same

none of the choices

What happens to the annual setup cost when the EPQ increases and the demand remains the same or unchanged and the setup cost remains the same?

the annual setup cost increases

the annual setup cost decreases

the annual setup stays the same

none of the choices

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