We know that, theoretically, ordering the EOQ drives lower costs. However, what happens when we introduce modifications to the assumptions of the EOQ model? Think about the following situations and select all the statements that are true.

Select all correct answers

If planned backorders are allowed, the order size will increase.

A one-time-buy discount will always increase the order size.

If a lead time is introduced in the EOQ model, the order size will increase.

If there is any lead time, the pipeline inventory will be a function of the order size.

A decrease of the transaction cost will increase the order size.

None of the above