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Author Question: A product whose EOQ is 40 experiences a decrease in ordering cost from $90 per order to $10. The ... (Read 97 times)

BRWH

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Question 1

Which of the following statements about the basic EOQ model is false?
◦ If annual demand were to double, the EOQ would also double.
◦ If annual demand were to double, the number of orders per year would increase.
◦ If the setup cost were to decrease, the EOQ would fall.
◦ If the carrying cost were to increase, the EOQ would fall.
◦ If the ordering cost were to increase, the EOQ would rise.

Question 2

A product whose EOQ is 40 experiences a decrease in ordering cost from $90 per order to $10. The revised EOQ is
◦ one-third as large.
◦ three times as large.
◦ nine times as large.
◦ cannot be determined.
◦ one-ninth as large.


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Marked as best answer by BRWH on Dec 3, 2019

fraziera112

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BRWH

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Reply 2 on: Dec 3, 2019
Thanks for the timely response, appreciate it


Liddy

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Reply 3 on: Yesterday
Excellent

 

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