Question: Which of the following statements on the basic EOQ model is CORRECT? A.Centralizing inventory via pooling will decrease cycle inventory. B.If demand rate doubles, optimal
Which of the following statements on the basic EOQ model is CORRECT?
A.Centralizing inventory via pooling will decrease cycle inventory.
B.If demand rate doubles, optimal order quantity will also double.
C.One should decrease order size when fixed ordering (set up) cost is higher than holding cost.
D.Even small deviations from optimal order quantity will result in significant cost increases.
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